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  #1  
Old 02-09-2018, 03:14 PM
samianbah samianbah is offline
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Join Date: Jan 2018
Posts: 1
VAT for non vat based qbooks

Hello, have a few issues tryuing to resolve.

1. i dont create invoices for customers so we are cash based mostly
2. when i input the cash received, i do it the following ways.
a. check / credit card / cash is deposited to bank account
b. journal entries are entered eg.
DR : CASH ( $100 )
CR : VAT OUT ( 7.5% )
CR : AR_ASSET_ACCOUNT ( $92.50)
then i end up with negative AR _ ASSET

i then create another JOURNAL ENTRY
eg.
DR: AR_ASSET _ACCTONT
CR: Bank Account.

does this look right or is there a better way?
thank you
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  #2  
Old 02-10-2018, 05:22 AM
Rustler Rustler is offline
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Join Date: Feb 2008
Location: Texas - The Republic
Posts: 2,413
The sale should be posted, from what you show
debit cash 100.00
credit income 92.50
credit vat out 7.50
debit cogs for the cost of what was sold
credit the asset account for the cost of what was sold

a debit to asset and credit to the bank would be for the cost of the item sold when you purchase it
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