How do i record Company vehicle purchased for $97500 loan and balloon

1

Hi, i purchased a company car for 97500 by finance with a balloon of 60000. The maximum threshold is 57581 to claim GST on. How do i enter all this and what do i enter?

2

This is not a question related to Manager but to double entry accounting.

That said, you have a fixed asset, the car, that is paid partially with cash and partially with a financing.

You have to do this accounting entries:

  1. a receipt of money 60.000 Vs a liability, a bank financing;
  2. a purchase invoice of the fixed asset of 97.500 which will have to parts: one subject to GST and one not;
  3. a payment of 97.500+GST vs the supplier.
3

A car is not a fixed asset is it?
Anyways i need to know how to create all this on manager.
Finance for Company vehicle of $97500.01.
What accounts should i create. And how should i do this.
at the moment i created a special account Called Toyota Finance.
I also created a asset account called Company Vehicle.
when i create a purchase entry from Special account Toyota finance it does not reflect the asset table showing the amount of asset
Please help.

4

Yes it is since it’s a company Veicle. Fixed assets are items of value that the organization has bought and will use for an extended period of time; fixed assets normally include items such as land and buildings , motor vehicles , furniture, office equipment , computers, fixtures and fittings, and plant and machinery .

There are specific guides about this. Please read them, try them and finally post specific questions. Don’t ask a step by step tutorial or for a double entry accounting course.

5

Cant find any examples of company vehicle on loan in Guides.

6

Dear Ashuraya,

You will never find a guide into an accounting software manual on how to account the purchase of a car with a loan. You’ll find how to account a fixed asset, how to account a loan, how to pay an expense and so on with the tools the program provides you.

What I’m trying to explain to you, evidently without success, is that how to account your specific case is simply a matter of double entry accounting and local laws which is complitely out of topic on this forum. If you are not able you should ask in double entry accounting forum, ask a friend or hire an accountant, which I kindly suggest you since you don’t know what a fixed asset is and a wrong representation of the numbers will bring you a lot of problems.

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7

@Ashuraya you will need to send your accountant the invoice from the car dealer, Toyota finance contract and your business use percentage as per your log book. Your accountant will know how to create the accounts and cover the following tax and accounting requirements:

  • Enter the full liability including unexpired interest charges.
  • Enter the asset up to the depreciation cost limit and the amount exceeding the depreciation cost limit.
  • Limit the GST claimed to the depreciation cost limit.
  • Adjust for private use if you are a sole trader or a partner in a partnership.
  • Allow for employee contributions to cover fringe benefits if you operate through a trust or company.
  • Amortise the interest charges based on the terms of the finance contract.
8

Hi Tony,
Thanks for your reply.
I currently do my own accounting and my accountant just makes sure things are correct at the end.
I save money that way.
She told me what to do but the issue i had was setting the accounts up in Manager. All the figures i know i just didnt know how to set it up in Manager.
Which i was told by Davide not to ask step by step instructions.
Thank you for your time and help.
Regards.