Sorry if I have asked this one before.
The council produce an annual rate demand payable in 10 monthly amounts.
How can I best handlle this?
Hi Roger,
Firstly create a new asset account called 'Council Rates Prepayment', and a new expense account called 'Council Rates'.
Now let's say your annual rates charge is £1,800. Record two General Transactions each month:
1. From the 'Cheque Account' to the 'Council Rates Prepayment' for £180
2. From the 'Council Rates Prepayment' account to the 'Council Rates' expense account for £150
However: for the last two months of the year only record the second transaction, not the first.
Regards,
