Sole Trader accounting

Rael

Registered User
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48
I signed up on a Business Lease agreement for new van this year for business purposes -
I have claimed back the VAT in the HP repayment for each month -
How do I enter up / record the van "purchase" and HP repayments ?
 
Rael

I would recommend that you record the Van purchase as a Fixed Asset purchase.
The supplier of the Van will be a creditor and and you treat the lease as a payment to this creditor.
This lease is a liability on the balance sheet and you treat the payments as payments against this liability over the life of the loan.
 
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