General Chat

thanks for that joe,, im still lost, when i took this course for sage i told them i was worried about having to do manual , was told,,wont be a problem its only a small section and there are tutors to help. so like a fool i took it on,. they reckon you dont need any experience in book keeping, i think i disagree with them now, i struggled all the way through 4 manual assignments, once i got on the computer i thought the manual was behind me. the comp work was a breeze, then i was told because i want to work from home doing this i would have to sit 2 exams, one manual, one pc, ive already made errors on the exam paper ,so that will prob fail me, im about a blink of an eye away from binning the lot.its so frustrating.trouble is its alot of money to throw away,

Sorry just read that the amounts have been given to you. As I was told when I was studying book-keeping many, many, many years ago The Credit column is the one nearest the window. Failed umpteen times till I realised I was facing the wrong way !

As far as I understand your problem you have 4 Till receipts. For example No.1 is for £50.00 Petrol for your car No.2 for computer upgrades £192.00 No.3 for Office furniture - 1 chair £127.50 No.4 for £48.00 Petrol for car. The PURCHASE ledger contains Creditor accounts and records Purchases made on Credit from suppliers of the business Payment of amounts owing to Creditors. The PURCHASE LEDGER does NOT record Cash purchases (which also means payments by cheque) The GENERAL LEDGER contains accounts qhich record : Fixed Assets Long Term Liabilities Running expenses incurred, income received Sales Account Purchases account (total of cash and credit purchases NOT fixed asset purchase Capital account VAT Stock. If you paid by CASH /Cheque for Petrol then all entries barring the chair will go over the GENERAL LEDGER Credit Cash or Bank account with the Item No. 1 £50.00 Debit Petrol account £50 /1.175 (42.55) Debit VAT 7.45 Difference betweeen £50 and 42.55. Check the amount is correct by multiplying 42.55 * 17.5. The item - Office Furniture will probably be entered into Fixed Assets as it has a resale value should the company fold and will be depreciated annually I have only gioven an idea of what the Till receipts may be, you may prefer to make them all Petrol - not much else is paid for with a Till receipt unless you entertain maybe clients for lunch so adjust as you think fit. As far as SAGE is concerned if you don't understand the basics of book-keeping you will be lost with SAGE if anything goes wrong. From my recollection of SAGE it does the calculation of VAT automatically - but you should still know how it works. That's my view, hopefully rightly.

Take a break and then look again at it. I'm off out but hope to be back about 4pm. Good luck Christine

thanks for that pat, thanks to all who replied. ...

thank you so much for that just woody,. all the ledgers/acconts are laid out, just have to read through the questions in the paper and fill in the correct accounts/ledgers, not much hope of that me thinks., just so many of them, makes your head spin, thanks again for the help,. time for a break now i think, try to get my head round it later,

You need to enter the nett amount (excluding VAT) in the relevant expenditure column. Then enter the VAT amount in another (VAT) column to be able to reclaim the VAT paid by offsetting against the VAT due to be paid to Customs at the end of the quarter. Pat

You need manual just in case all computers crash!!! Oh and to keep paper-shufflers and Revenue and Customs in a job! I do wages manually in next to no time. Takes absolutely ages on the computer!

Oh right! In that case if paid by cash then enter in cash, if by cheque/debit card then enter in bank column, if by credit card then so, with vat in appropriate column. Just to confuse you further there can be a petty cash column as well and in our case we use a daily cash column as a lot of purchases are paid COD straight from our till.

wish it was still like that betty boo, im not good with this manual stuff, the compertised sage is what im aiming for, just have to do this bit before i can take the exam on that, which i had no trouble with during the course.why they need all these ledgers etc for one transaction ...

they are not invoices, just till reciepts, no company names on them. all im given is the date and amount on each reciept plus vat,and to post to relevant accounts/ledgers. at the rate this is going into my head ill be lucky to reach the fail mark...

Hi Bookkeeping in my day anyway was just DEBIT and CREDIT in otherwords, what comes in and what goes out. Betty

I'm assuming the 4 are all from same firm. If so then open a ledger entry for the firm. You need to note amount of invoice and then when and how it was paid. If it wasn't paid before end of vat quarter then the vat paid can't be reclaimed until payment is made.

theres no vat reg numbers given. ... do i just enter them in purchases acount. .... see i dont understand the diff between purhcase ledger and purchase account, the purchase ledger only has room for 2 transactions which ive done,.

yes its vat registered, just has this c) there are 4 till reciepts one for each week of march, then it gives dates and amounts, then says plus vat. post these amounts to the relevant ledger, thats where im stuck, i dont know if they go in purchases ledger /purchases accounts/cash, im really stuck on working this out, i hate double entry ,,,,

Chris is right actually - and the invoices should have a vat reg number as well.

Ok, if company has spent the money, they're purchases and yes you do put the money in the vat account.

Jennifer 1. Is the ficticious company VAT registered?....Or is it a trick question? If Vat registered then you need to break down the cost of goods and Vat. If not then the total cost (goods and Vat) will be the expense 2. Are the expenses listed by item? Are they legitimate business expenses? If not legitimate then they should be ignored. If legitimate then see answer one :))) Chris

im presuming these reciepts will be for what the company has spent? it dosnt say.. i dont know if i enter them in the cash account, purchases acount,,, dont even understand if i put the vat in the seperate vat account,

what i have is to enter 4 till reciepts found ,,they have date and amount then plus vat @17.50%, post amounts to the relevant accounts,,, and im well lost on this one,