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debtors control etc

  • 27-03-2012 10:37pm
    #1
    ekans
    Banned (with Prison Access) Posts: 44 ✭


    2 quick q's which hopefully someone can enlighten me on.

    firstly, lets say for a moment i am doing the accounts for a vat registered client, his/her expenses in the p&l are gonna be excluding vat right? am i on the right lines?

    secondly a separate issue, regards debtors control account, is it the case that i can only operate a debtors control account if i know of the vat breakdown on everything? debtors control account is an area i am not confident at, scouting around here on the internet i cannot see any suitable notes on them. generally confused by exactly how they operate :/

    Thanks in advance


Comments

  • #2
    KingEnda
    Registered Users, Registered Users 2 Posts: 139 ✭✭KingEnda


    ekans wrote: »
    2 quick q's which hopefully someone can enlighten me on.

    firstly, lets say for a moment i am doing the accounts for a vat registered client, his/her expenses in the p&l are gonna be excluding vat right? am i on the right lines?

    secondly a separate issue, regards debtors control account, is it the case that i can only operate a debtors control account if i know of the vat breakdown on everything? debtors control account is an area i am not confident at, scouting around here on the internet i cannot see any suitable notes on them. generally confused by exactly how they operate :/

    Thanks in advance

    Firstly everything in the P&L is exclusive of VAT for a VAT registered client.

    You dont need the VAT breakdown on everything to do the Debtors Control Account. Any introductory accounting book should have a section on the Debtors Control account


  • #3
    smcgiff
    Closed Accounts Posts: 5,943 ✭✭✭smcgiff


    Are you using an accounts package such as Sage?

    Such packages take all the work out of control accounts. And if you're not using an accounts package... get one! :)


  • #4
    sipstrassi
    Registered Users, Registered Users 2 Posts: 131 ✭✭sipstrassi


    Hi ekans.

    Very simply, on a sales transaction you debit the dr's control the full amount of the invoice and credit the VAT Control with the VAT element and credit the sales account with the sales element e.g. an invoice for something that you are selling for 100 and it is subject to VAT @ 23% will have a distribution as follows:
    DR Debtor's Control 123
    CR VAT Control 23
    CR Revenue account 100

    The above is very simplified - if you are using stock the distributions are more complicated with COGS and so on.

    Hope that helps.


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