Scenario: Talat Ltd has just bought a machine for £17,000 net for company use and paid VAT on the purchase and the total amount will be paid next month. What will be the double entry posting for this? Double entry posting: DR: Machine account                     £17,000 DR: VAT account                            £3,400 CR: PLCA                                       £20,400 Reason: The … Read More

Scenario: Talat Ltd has just bought a machine for £17,000 net for company use and paid VAT on the purchase and the total amount will be paid next month. What will be the double entry posting for this? Double entry posting: DR: Machine account                     £17,000 DR: VAT account                            £3,400 CR: PLCA                                       £20,400 Reason: The … Read More

Scenario: The owner of Raqut Services has just bought a vehicle for £60,000 for his personal use and he has paid for it through the business bank account. What will be the double entry posting for this? Double entry posting: DR: Drawings account                   £60,000 CR: Bank account                 … Read More