Sundry Creditor's A/C

[Red]

Hi, could anyone explain what sundry creditor's A/C is? what would be posted to it? Is it different from other supplier's a/c? Does it include VAT? If not, how to do with VAT? and are there any other things I need to know about it?

[Melanie]

Sundry creditors would include creditors of the company that are not trade creditors and are not loans. It would act in the same way as the Trade creditors account, so yes, it would include items at their gross (VAT incl) value

[Red]

Thanks a lot, Melanie! <BR>I do agree with you that the figures in sundry creditor's a/c should include VAT. But somehow it is different from what I was told. That was part of my devolved assessment of MFR. I don't remember the original question, but it was something like buying oven as fixed asset, the invoice was received at the end of accounting period, the invoice consists of the cost of oven, the fitting fee stated in the question as repair&maintanence expenses, then the VAT on top of them, minus the deposit paid in advance, the remaining total was shown on the invoice. the question also stated the VAT will be paid when the payment will be paid. So I was told(if I understood it correctly), debit fixed assets a/c with the net figure of cost, debit repair&maintanence a/c, credit sundry creditor's a/c with the net figure of the cost and the fitting fee, debit sundry creditor's a/c with the amount of deposit, credit bank for this amount of deposit. That were all double entries being made. The VAT was not dealt with, because no VAT will be made as accrual. The double entries here are only recording information, when the remaining payment made in the next period, then the VAT will be dealt with. All these to me sounds logical, but is it the special case where we should put net figure. How do you think? if you agree with what i was told, then what will be your double entries in VAT a/c in the next period?<BR><BR>Thanks in advance!

[Katemarie36]

Sundry creditors should include any VAT and TAX liability also (amounts outstanding)