Bought Washing through Books for Staff who to treat in A/c
Posted: 22 Oct 2019, 09:09
Hi, so we bought a washing machine for an employee to the Value of €400.00 Power City invoiced us and we paid by bank transfer
CR Bank (1200 A/c) €400, Dr Cleaning Products N/C 7801 € 325.80, DR VAT N/C 2201 VAT.
I am struggling how to treat the wages.
So Imagine the employee is due to get €781.30 PM
Do I
CR Bank (1200 A/C) Wages €700
DR N/C 2220 €700
We will be deducting €81.30 PM and are not charging interest as per directors request
CR Bank (1220 Contra Bank) Wages €81.30 (to show monies not paid to him)
DR N/C 2220 €81.30 So this will wash out the 2220 A/C
This however will leave me with a credit of €325.20 on (€1220 Contra A/C) after 4 months - Where does that go ?
I feel I am almost there, but not quite and I just don't know how to treat it. I feel it is because we paid a supplier direct for a product so that washed out.
Any help would be great
Thanks so much
Caroline
CR Bank (1200 A/c) €400, Dr Cleaning Products N/C 7801 € 325.80, DR VAT N/C 2201 VAT.
I am struggling how to treat the wages.
So Imagine the employee is due to get €781.30 PM
Do I
CR Bank (1200 A/C) Wages €700
DR N/C 2220 €700
We will be deducting €81.30 PM and are not charging interest as per directors request
CR Bank (1220 Contra Bank) Wages €81.30 (to show monies not paid to him)
DR N/C 2220 €81.30 So this will wash out the 2220 A/C
This however will leave me with a credit of €325.20 on (€1220 Contra A/C) after 4 months - Where does that go ?
I feel I am almost there, but not quite and I just don't know how to treat it. I feel it is because we paid a supplier direct for a product so that washed out.
Any help would be great
Thanks so much
Caroline