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Thread: Vehicle installment agreement

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    Vehicle installment agreement

    Please could you assist me in recording a vehicle instalment sale on Pastel. I know all the entries except the Finance? Does in go to the Balance Sheet or is it expensed?

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    Junior Member Rika's Avatar
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    Hi

    This is a long term liability and should appear on your balance sheet. Remember to also do you fixed asset register.

    Enjoy

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    miskaccounting (11-Oct-12)

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    Hi Rika, Thanks for your help. Could I possibly email you the installment sale agreement as well as the journals that I've processed so you can check if I'm correct?

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    Junior Member Rika's Avatar
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    certainly.

    rbarnardo@gmail.com

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    miskaccounting (11-Oct-12)

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    Thanks a mil, will email in 5 minutes!

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    Junior Member Rika's Avatar
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    Junior Member Rika's Avatar
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    I'm darved the finance charge needs to be expensed. I've sent you mail.

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    miskaccounting (12-Oct-12)

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    Platinum Member Neville Bailey's Avatar
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    I addressed a similar question in the following thread some time ago which might help:

    http://www.theforumsa.co.za/forums/s...e-HP-on-Pastel
    Neville Bailey - Pastel Accounting Consultant and Photographer
    neville@accountingsoftwaresupport.co.za
    www.accountingsoftwaresupport.co.za
    View Neville Bailey Photography

    *** 20% DISCOUNT ON PASTEL XPRESS / PARTNER SOFTWARE UNTIL 15 DECEMBER 2017 ***

    "Give every person more in use value than you take from them in cash value."
    WALLACE WATTLES (1860-1911)

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    miskaccounting (12-Oct-12)

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    Hi Neville, thanks for your help, you're a star, please check my journal

    Motor Vehicles 6200/010 245665,00(D)
    Motor Vehicle Expenses (Licence & Reg) 6200/010 3500,00 (D)
    Bank Charges (Initial Fees) 3200/000 1000,00(D)
    Vat 9500/000 140,00 (D)
    Deferred Finance Charges (B/S) 5600/999 40055,28 (D)
    Bank Charges (monthly fee [R57 x 42 months]) ?? 3200/000 2100,00(D)
    Vat ?? 9500/000 294,00(D)

    Instalment Sale: KIA Sportage 5600/100 292754,28(C)

    You did not mention the montly fee in your journal but its included in the Total of R292754,28.

    At year end do I need an amortisation schedule to write of the finance charges or can I take 40055,28/12months???????

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    Platinum Member Neville Bailey's Avatar
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    Quote Originally Posted by miskaccounting View Post
    Motor Vehicles 6200/010 245665,00(D)
    Motor Vehicle Expenses (Licence & Reg) 6200/010 3500,00 (D)
    Bank Charges (Initial Fees) 3200/000 1000,00(D)
    Vat 9500/000 140,00 (D)
    Deferred Finance Charges (B/S) 5600/999 40055,28 (D)
    Bank Charges (monthly fee [R57 x 42 months]) ?? 3200/000 2100,00(D)
    Vat ?? 9500/000 294,00(D)

    Instalment Sale: KIA Sportage 5600/100 292754,28(C)

    You did not mention the montly fee in your journal but its included in the Total of R292754,28.

    At year end do I need an amortisation schedule to write of the finance charges or can I take 40055,28/12months???????
    It looks fine to me.

    It's important that you set out the journal in the way I described it in the other thread, so that the VAT gets treated correctly.

    You are correct with respect to the amortisation schedule at year-end. You cannot simply take 12 months of the deferred finance charges, as the finance charges are weighted heavily in the earlier months.
    Neville Bailey - Pastel Accounting Consultant and Photographer
    neville@accountingsoftwaresupport.co.za
    www.accountingsoftwaresupport.co.za
    View Neville Bailey Photography

    *** 20% DISCOUNT ON PASTEL XPRESS / PARTNER SOFTWARE UNTIL 15 DECEMBER 2017 ***

    "Give every person more in use value than you take from them in cash value."
    WALLACE WATTLES (1860-1911)

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    Rika (13-Oct-12)

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