Please bear with me as I'm new to this,
Right needed a new car for my business, don't usually do HP as I find it easier to obtain a bank loan and pay cash for a purchase of that amount and usually can get a discount for cash from several dealers.
Anyway this is what happened Bank loan for (example) £14000.00 paid into my bank account, the bank set up a separate loan account from which they transferred the cash from
Purchased Car for (example) £11999.00
Documentation fee of (example) £99.00
Total Purchase Price (example) £12098.00
Balance of Loan £1902.00
As I am self employed/Sole trader I am not registered for VAT and so the VAT element is included in the cost
Now I know the nominal codes are
050 Motor Vehicle costs
2300 Hire Purchase/Loan
7340 Miscellaneous Vehicle Expenses
My question is do I set up the dealer as a supplier with nominal code 050 for the car, nominal code 7340 as Miscellaneous Vehicle Expenses and transfer the Total Purchase Price from the bank to Nominal code 2300
Many Thanks for your patience and any constructive advice would be most welcome
Thanks for using Sage City. I’m sorry for the delay in my reply, we’ve currently transitioned to a new system and are catching up with answering outstanding queries.
If you use the following link to the help file it will take you through the process of recording this: https://help.sageone.com/en_uk/accounting/extra-purchase-asset.html