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Re: Capital Purchases and Finance in AccountRight
Hi Ash Hi Ash You need to be very clear on the finance you are using. A personal loan or similar does not have GST, a hire purchase arrangement does have GST, which I believe is now claimable at the start of the agreement. With hire purchase the vehicle remains the property of the financier and does not appear on the company accounts until such time that the HP is paid out. These days HP is rarely used and loan is the most likely arrangement. In this case the car vendors bill is written as 1-xxxx Motor Vehicle at Cost $64741 CAP 1-xxxx Motor Vehicle at Cost Remainder NT The loan needs to be setup as Credit Card type and is populated by using Pay Bills to pay the bill. It is unaffected by the GST registration of the company. I recently answered a similar query and you might find the notes below useful Changes to Chart of Accounts 1-xx00 (Motor Vehicle) at Cost 1-xx05 depreciation on (motor vehicle) 2- xx00 ABC loan (setup as Credit Card type) 2- xx05 ABC loan interest (setup as Credit Card type) 2 -0007 ABC loan balloon (setup as Credit Card type) 8- xxxx Sale of Asset(MV) I assume that you already have a Cash drawer and a Directors loan Account Use Receive Money to Cash Drawer for Sale of old Vehicle 15000 Account 8-xxxx Tax CAP Setup purchase Invoice for entire cost of Vehicle inc. registration, dealer fees and charges. Line 1 should read Vehicle details inc. Reg #, VIN. Account 1-xx00 MV at Cost $64741 Tax CAP Line 2 Vehicle Difference Tax N-T https://www.ato.gov.au/Business/GST/In-detail/Your-industry/Motor-vehicle-and-transport/GST-and-motor-vehicles/?anchor=Purchasingamotorvehicle#UsedSolelyForBusiness Generally, if you purchase a car and the price is more than the car limit, the maximum amount of GST credit you can claim is one-eleventh of that limit. For 2022–23, the maximum GST credit you can claim is $5,885 (that is, 1/11 × $64,741). This limit also applies to cars which are fuel efficient. Pay invoice in three steps From Directors loan or Bank $500 From Cash drawer $15000 From Loan Account Balance We then need to set up the loan account. Spend money from Loan Account to Interest on Loan $17K Assuming that there is no GST on the Loan charges spend money from Loan Account to Bank charges $1301 FRE. If there is identifiable GST charge to Merchant Fees Calculate the loan amount over $48K and use Spend Money to 2-0007 Balloon. Monthly payments should be made Bank to Loan and the accountant can do an end of year adjustment to move some of the payment to Interest payable.11KViews1like0CommentsRe: can some one help with gst summary cash report not matching profit & loss statement
ajauto The GST cash report is just that, monies collected and paid for any given period. The profit and loss is an accrual report and shows invoices and bills for a given period regardless of their payment status. If you look under Reports> Accounts> Small Business Entity you will find Profit & Loss Cash Basis. You should find better agreement with your GST report.1.1KViews1like0CommentsRe: I represent a church registered for GST needing to invoice another church not registered for GST. Do I charge the GST? Can I claim it back?
Margaret8 As an entity registered for GST you must charge them GST unless they have a letter of exemption from the government. Think about as rare as hen's teeth. Presumably they are not registered because they are below the $150K limit for NFP's. Your situation is no different than the power company or the cleaning company - you need to add GST to your invoice. You will not be claiming it back, rather you you be paying it to the ATO at the next BAS1.1KViews1like0CommentsRe: Accrual/Cash
LaniOUP GDay53 One of the problems with the QB model is that it gives a report tyhat is not a Balance Sheet. Flicking to cash basis in QBO removes the Receivables and Payables and you have a Balance Sheet that does not balance. What numbers are you looking for as it may available from another report?1.2KViews2likes0CommentsRe: Capital Purchases and Finance in AccountRight
forms There are a couple of issues here that make me think that you really need to talk to the client's accountant. A chattel mortgage implies that the vehicle was bought by the client. Was the agreement a separate document? It will depend on the book value of the vehicle at the time of sale. The accountant will need cost of vehicle, amount of loan, amount repaid to date and date of sale. They will then work out the depreciated value of the vehicle and if there has been a profit or loss on the sale of the vehicle. To save me writing a lot of details of processes about if this, if that, once you have the information please come back through the main part of the forum if you need further assistance.50KViews3likes0CommentsRe: Capital Purchases and Finance in AccountRight
The monthly payment should be bank to loan for the total payable. To pick up interest payment you need to do another spend money Loan Account to Unexpired Interest. This can be done periodically and is often left to end of year. Ron B54KViews1like0CommentsRe: 2017 Forum Superhero competition winners!
CloudMindAcc Suja_P Thankyou for the congratulations, I have a cunning plan that involves meeting up with Gavin and whisky. Seriously I enjoy the forum, not because of any prize that may become available. What continuously blows me away is the knowledge of others. I look at Gavin, who probably knows more about the backroom than some on MYOB tech staff, a recent private query had him explaining the hexadecimal behind it. Wow! Then there is Mike who I reckon set some sort of record recently in sorting out a 'send to excel problem' that went for pages and pages of back and forth. Literally by about page two they were well over my head in excel. When it comes to Essentials I am not there, but between Kym double underscore Y ( a right pain when you are using a search and forget the double) and Renae in the Cloud who always put up educational responses. The three threads that Suja has acknowledged are all worthy of note. I hope that it will further encourage @AnnaH to drop into the forum with some more insights on the WIne Industry and its tax treatment. For me, a good session on the forum is when I have been able to help someone and when I have learnt something.6KViews7likes0CommentsRe: Capital Purchases and Finance in AccountRight
Telperien You should move the money from the loan account to the balloon account as at the date of the loan so that loan account is representative of the amount still payable on the loan.It will not be exactly the amount payable as your accountant should do the adjustment to the interest when he finalises the accounts at year end. The deposit paid, then refunded should be paid back to account that it came from. Either your trading account/Credit card or personal funds. Personal funds are generally represented on the chart of accounts as Directors Loan or Directors current account. Ron62KViews2likes0Comments