Hire purchase unbalancing quickbooks

Thanks for joining us here, TaylorsDecorating.

Since there was no real money involved when the vehicle was purchased, you can record a barter transaction so the bank balance is not affected. I'd be glad to share the all steps with you. 

First, create a barter bank account. You will use this as the holding account and payment so the transactions will not deduct in the bank balance in QBO. Here's how:

1. Go to Settings ⚙ then select Chart of accounts.
2. Select New to create a new account.
3. Proceed to the Account Type ▼ dropdown, and select Bank.
4. Under the Detail Type ▼ dropdown, select Cash on hand.
5. Enter the account name. (ex. Barter Bank Account)
6. Choose Save and Close.

Second, create an invoice and receive a payment for the old van that was used as a deposit. This is to temporarily put the amount in the barter bank account. Here's how: 

1. Click the + New button and select Invoice.
2. From the Customer ▼ dropdown, select your supplier’s (barter partner) name.
3. Enter all the necessary information.
4. Select Save and Close.

Then, follow these steps on how to receive and post the payment in the barter bank account:

1. Go back to the + New button and select Receive payment.
2. From the Customer ▼ dropdown, select your supplier’s (barter partner) name. Fill in the date and amount.
3. Click the drop-down list for  Payment method ▼ dropdown, then Add new.
4. Enter “Barter” in the Name field, then select Save.
5. Under the drop-down list for Deposit to ▼, select your barter bank account.
6. Select Save and close.

Now that the amount is posted in the holding account, record the expense transaction for the purchase of the new vehicle. Here's how: 

1. Click the + New button again and select Expense.
2. From the Supplier ▼ dropdown, select the name of the supplier who sold the vehicle.
3. Proceed to the Payment account ▼ dropdown and look for the barter bank account.
4. Enter all other details related to the transaction.
5. Select Save and close.

You can check out this article for additional details about the steps above: Record a Barter Transaction.

With regards to reclaiming Vat, I recommend reaching out to your account for additional advise on this matter. Let me also share these articles for additional guidance and references:

• VAT: Getting Started
• Set Up and Record Purchase Taxes in QuickBooks Online

Let me know if you're able to record the transaction and fix the bank balance as well. I'd be glad to revisit this thread in case you have follow-up questions for me.