Hi,
I recently purchased a car for purely business use. But I paid the car out of personal account in full as the business hasn’t making enough money yet. Just wondering how to I record this transaction?
I recorded it as
Dr Fixed Asset
Dr GST paid
Cr Capital account
Is this correct? When i run BAS report, the GST paid does not show up.
No, you shouldn’t be recording the GST paid as a separate line entry, it should be part of the Fixed Asset entry by using the tax field
You could use an expense claim, allocating the transaction to a capital account. The point is that you paid for a business expense out of personal funds. See this Guide:
The gst is not straight 10% out of total price. GST is not applicable on Car rego, stamp duty etc. I have to check my journal. Thanks anyways.
Ok so you break up the entry to suit that.
On the first line you put the Fixed Asset value that is applicable to the GST paid plus the tax field
On the second line you put the Fixed Asset value that is not applicable to the GST with no tax field.
Now the Fixed Asset will total the correct amount and the GST will included on the BAS.