Question
vehicle trade in journals
Hi. I've recently traded in a vehicle for a replacement, and wonder if anyone here could confirm my journals are correct or not, I'm about to submit my vat return and wanted to check first. Here's what I've done (using example numbers). Uk tax and GBP. Thank you in anticipation.
1. Vehicle purchase from dealer
Dr motor vehicles 10,000 vat 20%
Cr creditors 12,000
2. Vehicle trade-in (to be dealt with by accountant at y/e for NBV etc
Dr uncategorised income 4800
Cr debtors 4,000 vat 20%
3. balance paid to dealer
Dr creditors 7200
cr bank 72000