Opening Trade Creditors 2009 Balances Help!!

fraggle79

Folks,
I have just recived the accounts from the accountant and the outstanding creditors for 2008 is Net of VAT.
We where using a spreadsheet manual system in 2008 to record all the books and subsequently reclaimed the VAT for these creditors.

I would have thought that the creditors should be the Gross amount

Please could someone clarrify the above

Also the accountant has charged me €1,000 for capital allowances computation of one vehicle and fixtures and also preparing Income Tax for 2008. I think this is a crazy price :mad: given that I handed him files with all the books and a cd of all the books in spreadsheet format. I would like to hear what the average price is for this.

Thanks!!!

jnh

The creditors should be shown including VAT due to them. The VAT element would be included in the VAT contol account on the other side of the balance sheet though. If you were using a single entry accounting system he may have just entered the net amount and not included the VAT. There will be no net difference to your accounts in either method.

The price depends on the level of work and the accuracy of your records etc.

fraggle79

Thats great....so the accountant was wrong.

jnh

its probable that he included the figures net of VAT and didnt show the VAT on the corresponding side. there will probably be no net effect so it wont really make a difference