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Purchase invoices from vat and non vat suppliers

  • Student
  • 33 posts
  • # 116194

 

Hello

Im self studying through kaplan books but cant get my head around the correct way of posting to ledgers?

how 1) non vat business posts receipts or invoices from a  vat supplier and how 2)a vat business posts from a non vat supplier?

 

I understand

1) non vat business posts the gross amount because it does not account for VAT that be either from a non vat or vat supplier?

2) a vat reg business posts the gross amount to creditor or cash and net to purchases and VAT.

 

is this correct?

 

bUT IF YOU RECIEVE a receipt or invoice from non vat supplier to a VAT business then is the amount inclusive of VAT ?

 

Please if anyone can clarify, Im stuck on how to post these to the ledgers? 

 

regards

 

Ezam

 

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