Capital Purchases and Finance in AccountRight
HOW TO RECORD CAPITAL PURCHASES AND FINANCE IN ACCOUNTRIGHT There are many finance options available to purchase capital equipment. Commonly used in Australia are: chattel mortgages: ownersh...
Forum Discussion
Hi Ash
Yes you do claim 1/11th of the cap for luxury car tax and you use CAP.
Whether you use accrual or cash the GST is claimed at this stage because you are claiming it all up front.
So the instalments are then coded against the loan and unexpired interest and the interest expense as per below:
If you have the amortization schedule you can reduce the unexpired interest.
When you record the repayment it should be recorded this way
eg repayment $2500 interest component $250
DR 2-XXXXLoan account 2500 N-T
CR 2-XXXX unexpired interest 250 N-T
DR 6-XXXX interest expense account 250 FRE
If you dont have the amortisation schedule a journal can be done at the end of the year by your accountant
Hope that helps
Lisa
Hope that helps
Lisa
