If the accountant does not have a schedule, your client should be able to get one from the financial company. Unless you correctly take into account the amount of interest each month, there really doesn`t make much sense to do it, so I`m not sure why the accountant is trying to guess! Answer: Create balance sheet accounts as follows: 1. Investment account called investment, code GST S15 2. Account of responsibility called z.B.: Hire Purchase – ABC Finance, code GST N-T 3. Liability account under the Hire Purchase account called Interest In Advance, GST code N-T Assuming the monthly repayment amount is $737.08 with an interest rate of $211.50, I would set up a recurring monthly currency of $737.08, with the breakdown of accounts with N-tax codes being the following; I spoke originally with the accountant and they offered the monthly repayment in order to include a gst component and also to reserve the monthly interest on the loan on the fee account. At the end of 2009, they decided to use the entire gst component. Therefore, all my entries for the 2010 GJ are false. The client pays annually The accountant has proposed that the maturity fee be $211.50. Hello. If there`s Anoyne there, it can help me… How to deal with daytime for early billing of rental-sale. Its effects on the investment account and the rental account, loss/earnings of assets, you also rego etc, which you place on their respective accounts.
In a later article, we will discuss accounting treatment beyond the primary period. ($211.50) on the non-expired interest account is also the accounting of money and check with the accountant this is each monthly payment. You should check that this is not a Chattel mortgage. If you get the schedule, then, as Susan says, you can do the reconciliation, and that`s one less thing the accountant has to do. If there is a GST including these assets, how can we take into account that if you use the first option, the accountant can draw the interest component at the end of the year. Hello, Delta, it`s been confusing for ages. Common sense tells me that you have to pay interest when signing a contract with HP. IE A responsibility. The 1600.00 is not an asset.
Obviously, the interest cost of 33.33 is a charge and to finalize the double entry, a loan must be made against something. Is it only for this administrative comfort that the HP rate account of 1,600.00 is considered an asset? I do not understand how this would give a real and fair picture in the balance sheet. Thank you very much. Flash As every accountant is different, I have trouble getting a clear definition of what is the right process.