Full Accounting - Transacting on Asset Accounts

Provision has been made to load transactions manually on Asset Accounts where necessary. 

Asset Accounts are Balance Sheet accounts and as such will normally have Debit Balances. The process would be as follows:

• To increase an Asset Account - create a Debit Note on the Account.  Always remember to also create a Credit Note on the relevant contra account
• To decrease any Asset Account - create a Credit Note on the Account.  Always remember to also create a Debit Note on the relevant contra account

Example

Lets say you bought a lawn mower for the Building and you paid the vendor from the Building Wallet using the third party payment process (Click HERE for the article).  

The purchase price of the lawn mower was R 4600 which included VAT of R 600 and let's assume the Building is registered for VAT. The following transactions can be made manually to reflect the purchase of the lawn mower for the Building:

• When you transferred the R 4600 to the Suspense Wallet for payment of the vendor, the system would have created a Credit on the Asset Group Bank Account of R 4600.
• To bring the asset onto the books will require a Debit on the Assets Account (Equipment Category) of R 4000 and another Debit on the VAT Control Account (Input VAT Category) of R 600.