book keeping help !!

[sharon@acumenretail.co.uk]

I have agreed to do some book keeping on an foc basis to refresh my book keeping skills. it is for a small sole trader. I haven't done any book keeping in ten years and was looking for a little reminder:-

are purchase invoices entered into the books as they arrive or only as and when they are paid? any templates on excel would be gratefully received.
on a technical note is the tax paid by the sole trade entered as a drawings or sundries item?

many thanks

sharon

[ben179v]

Purchase invoices depend on the setup he is using, is he VAT registered?, does he run a purchase ledger etc?
Tax paid (assuming you mean his self assesment PAYE & class 4) is drawings.

Hope that helps

[suleman]

Hi,

I think you must use the accruals basis which explains that income and expenses should recognise as they incurred not when they actually received or paid.

if it is a VAT registered business. the structure should be

purchases with net amount VAT Gross Amount


i hope it would help you

Regards
Suleman

[sharon@acumenretail.co.uk]

Hi,

I think you must use the accruals basis which explains that income and expenses should recognise as they incurred not when they actually received or paid.

if it is a VAT registered business. the structure should be

purchases with net amount VAT Gross Amount


i hope it would help you

Regards
Suleman
no there's no vat involved as t/o it quite low

[claudialowe]

If VAT is not involved, then I would do everything on the accruals basis.

Claudia