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Bimal Barchha
October 6, 2024
Question

Account for Asset Finance on Purchase

  • October 6, 2024
  • 1 reply
  • 0 views

Hi 

 

We purchased containers on Asset Finance

 

The total cost of the containers was £79,800. The asset finance company paid the Full amount to the supplier, but then we paid the asset finance company £19950 for the deposit element

 

 I need to enter this in Quick books and also ensure we claim the VAT back on the purchase

 

Can anyone help me how to record these transactions in Quick books please?

 

Thanks

 

 

1 reply

J
JoanaC
October 6, 2024
You can create a journal entry to account for purchase of containers using asset finance, Bimal.
 
While I can provide the general steps for the JE process but, in your case, your accountant would know best in handling VAT reclaimable transaction in QuickBooks Online (QBO) to determine the best accounting treatment. If you don't have an accountant, consider looking for a QuickBooks ProAdvisor near you. Simply enter your location and the service you need: QuickBooks ProAdvisor.
 
Here are the steps in create a journal entry:

 

  1. Go to the +New. 
  2. Under Other, select Journal Entry.  
  3. Enter the debit and credits. Consult your accountant in selecting the correct categories.
  4. Pick a VAT code.
  5. Hit Save and Close.  

 

Additionally, if you want to reverse or delete a JE in the future, refer to this article for further assistance: Reverse or delete a journal entry in QuickBooks Online.

 

I'll be here if you still have questions about your assets. Have a great day ahead.  

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