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?
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?