lease purchase

i bought a vechicle thourgh lease purchase over 48 months.
my first payment was the depoist and full vat amount of vechicle.
what way do i enter it on solar accounts so i can claim the vat back at end of my next quater.

Posted by William Patterson on Jan 24, 2012 8:59 PM GMT

Hi William,

You should create a new liability account to keep track of the amount owing on the vehicle, then create a Money Paid Out transaction from this liability account to the 'Motor Vehicles' account using the appropriate VAT rate. This will allow you to recover the VAT amount on your next VAT return.

Then each month you should record two Money Paid Out transactions; one allocated to the liability account to reduce the amount owed, the other allocated to 'Interest Charges' to record the interest expense.

This page gives more details:
http://www.solaraccounts.co.uk/forum/topic.php?TopicId=1032&Posts=1

Regards,

Posted by Mark McLaren (Solar Accounts) on Jan 25, 2012 2:01 PM GMT