Hi Dooloo,
Thank you for your reply. I had a feeling that would be the only way to do it but I wasnt sure!!
Sorry but I do have another question in relation to our first year accounts... we bought a van which was financed by a lease. In the nominals, would I be correct in showing the following figures?
Motor Vehicles A/c : Debit the cost of van (excluding VAT??) which is shown as an asset in the Balance Sheet
Lease A/c : Credit Finance Amount (do I include vat & interest??) which is shown as a liability in the Balance Sheet
I know I must split the lease payments between the interest, which is an expense in the P&L and the lease repayment, which is debited against the amount outstanding on the lease.
Many thanks,
Tweety