{"id":155,"date":"2016-07-21T07:28:00","date_gmt":"2016-07-21T06:28:00","guid":{"rendered":"https:\/\/www.thetrainingplace.org\/blog\/2016\/07\/21\/a-basic-test-on-your-double-entry\/"},"modified":"2016-07-21T07:28:00","modified_gmt":"2016-07-21T06:28:00","slug":"a-basic-test-on-your-double-entry","status":"publish","type":"post","link":"https:\/\/www.thetrainingplace.org\/blog\/2016\/07\/a-basic-test-on-your-double-entry\/","title":{"rendered":"A BASIC TEST ON YOUR DOUBLE ENTRY"},"content":{"rendered":"<div>\n<b><span style=\"font-family: &quot;arial&quot; , &quot;sans-serif&quot;; font-size: 12.0pt;\"><br \/><\/span><\/b><\/div>\n<div>\n<b><span style=\"font-family: &quot;arial&quot; , &quot;sans-serif&quot;; font-size: 12.0pt;\">Scenario:<o:p><\/o:p><\/span><\/b><\/div>\n<div>\n<span style=\"font-family: &quot;arial&quot; , &quot;sans-serif&quot;; font-size: 12.0pt;\">Jemm<br \/>\nLtd has just bought a machine for \u00a330,000 net for company use and paid VAT on<br \/>\nthe purchase and the total amount was paid through the bank account<br \/>\nimmediately. What will be the double entry posting for this?<o:p><\/o:p><\/span><\/div>\n<div>\n<\/div>\n<div>\n<a href=\"https:\/\/blogger.googleusercontent.com\/img\/b\/R29vZ2xl\/AVvXsEh5uXePPRGEKm5vNHCJZJViV9uVKLfIKjjmGiWi3CuUUKFmz8g2RsFQHb2z2f8RScwVCuCRX8Hcx13Z8nTzDd3frY1r_dXQ8y7Jd2nYBJ9NSWi56cXj0KfDv3q7SeuD-sZIql80d3JCBRY\/s1600\/IMAGE+46.jpg\" style=\"clear: right; float: right; margin-bottom: 1em; margin-left: 1em;\"><img loading=\"lazy\" decoding=\"async\" border=\"0\" height=\"193\" src=\"https:\/\/blogger.googleusercontent.com\/img\/b\/R29vZ2xl\/AVvXsEh5uXePPRGEKm5vNHCJZJViV9uVKLfIKjjmGiWi3CuUUKFmz8g2RsFQHb2z2f8RScwVCuCRX8Hcx13Z8nTzDd3frY1r_dXQ8y7Jd2nYBJ9NSWi56cXj0KfDv3q7SeuD-sZIql80d3JCBRY\/s320\/IMAGE+46.jpg\" width=\"320\" \/><\/a><b><span style=\"font-family: &quot;arial&quot; , &quot;sans-serif&quot;; font-size: 12.0pt;\">Double entry posting:<o:p><\/o:p><\/span><\/b><\/div>\n<div>\n<span style=\"font-family: &quot;arial&quot; , &quot;sans-serif&quot;; font-size: 12.0pt;\">DR:<br \/>\nMachine account &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; \u00a330,000<o:p><\/o:p><\/span><\/div>\n<div>\n<span style=\"font-family: &quot;arial&quot; , &quot;sans-serif&quot;; font-size: 12.0pt;\">DR:<br \/>\nVAT account &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; \u00a36,000<o:p><\/o:p><\/span><\/div>\n<div>\n<span style=\"font-family: &quot;arial&quot; , &quot;sans-serif&quot;; font-size: 12.0pt;\">CR:<br \/>\nBank account &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; \u00a336,000<o:p><\/o:p><\/span><\/div>\n<div>\n<\/div>\n<div>\n<b><span style=\"font-family: &quot;arial&quot; , &quot;sans-serif&quot;; font-size: 12.0pt;\">Reason:<o:p><\/o:p><\/span><\/b><\/div>\n<div>\n<span style=\"font-family: &quot;arial&quot; , &quot;sans-serif&quot;; font-size: 12.0pt;\">The<br \/>\nmachine account has been debited because machines are increasing and if an<br \/>\nasset is increasing we debit the relevant asset account and we have debited VAT<br \/>\naccount with 20% of \u00a330000; because VAT on purchases is an asset which can be<br \/>\nclaimed back from HMRC and the amount to be claimed back is obviously<br \/>\nincreasing due to this additional purchase. <o:p><\/o:p><\/span><\/div>\n<div>\n<\/div>\n<div>\n<span style=\"font-family: &quot;arial&quot; , &quot;sans-serif&quot;; font-size: 12.0pt;\">We<br \/>\nhave credited bank because bank account is paying out money and the balance in<br \/>\nthe bank account is reducing; if an asset is decreasing, we credit the relevant<br \/>\nasset account.<o:p><\/o:p><\/span><\/div>\n<div>\n<\/div>\n<div>\n<span style=\"font-family: &quot;arial&quot; , &quot;sans-serif&quot;; font-size: 12.0pt;\">REMEMBER:<o:p><\/o:p><\/span><\/div>\n<div>\n<b><span style=\"font-family: &quot;arial&quot; , &quot;sans-serif&quot;; font-size: 12.0pt;\">DEAD\/CLIC<o:p><\/o:p><\/span><\/b><\/div>\n<div>\n<b><span style=\"font-family: &quot;arial&quot; , &quot;sans-serif&quot;; font-size: 12.0pt;\"><br \/><\/span><\/b><\/div>\n<div style=\"background-color: white; font-family: 'Trebuchet MS', Trebuchet, Verdana, sans-serif; font-size: 13.1999998092651px; line-height: 18.4799995422363px; margin: 0px;\">\n<span style=\"background-color: transparent; font-family: &quot;arial&quot; , sans-serif; font-size: 12pt;\">&nbsp;<\/span><span style=\"font-family: &quot;arial&quot; , sans-serif;\">Yours Sincerely,<\/span><br \/>\n<span style=\"font-family: &quot;arial&quot; , sans-serif;\">The Friendly Team<\/span><br \/>\n<span style=\"font-family: &quot;arial&quot; , sans-serif;\"><br \/><\/span><\/div>\n<div style=\"background-color: white; font-family: 'Trebuchet MS', Trebuchet, Verdana, sans-serif; font-size: 13.1999998092651px; line-height: 18.4799995422363px; margin: 0px;\">\n<span style=\"font-family: &quot;arial&quot; , sans-serif;\">The Training Place of Excellence Limited<\/span><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Scenario: Jemm Ltd has just bought a machine for \u00a330,000 net for company use and paid VAT on the purchase and the total amount was paid through the bank account immediately. What will be the double entry posting for this? Double entry posting: DR: Machine account &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; \u00a330,000 DR: VAT account &#8230; <a class=\"read-more\" href=\"https:\/\/www.thetrainingplace.org\/blog\/2016\/07\/a-basic-test-on-your-double-entry\/\">Read More<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-155","post","type-post","status-publish","format-standard","hentry","category-uncategorised"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>A BASIC TEST ON YOUR DOUBLE ENTRY - The Training Place Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.thetrainingplace.org\/blog\/2016\/07\/a-basic-test-on-your-double-entry\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"A BASIC TEST ON YOUR DOUBLE ENTRY - The Training Place Blog\" \/>\n<meta property=\"og:description\" content=\"Scenario: Jemm Ltd has just bought a machine for \u00a330,000 net for company use and paid VAT on the purchase and the total amount was paid through the bank account immediately. What will be the double entry posting for this? Double entry posting: DR: Machine account &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; \u00a330,000 DR: VAT account ... 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