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The Book-keepers Forum (UK) -> General Book-keeping & Accounting -> Posting of Insurance Claims and VAT
Post Info TOPIC: Posting of Insurance Claims and VAT
DOWGILE


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Posting of Insurance Claims and VAT
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Hi

I have a client who made a claim on his insurance regarding some damage done during a job.  He bought the materials worth £1700 personally for the customer then received the insurance claim (£1750) and lodged it in the business bank account.  He then transferred £1700 from the business bank account to his personal bank account.  Am I right on the follwing:-

Dr Purchases 1700     Cr Personal Drawings 1700
Dr Bank 1750    Cr Purchases 1750
Dr Personal Drawings 1700   Cr Bank

Can I claim VAT on the original payment for materials he made to the customer?

Thanks to anyone who can help.

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SarahT


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Your postings look ok to me. The only thing I would do different is to credit the initial purchase of materials to funds introduced instead of drawings.

If the purchase invoice was made out to your client then I think it would be ok to reclaim the VAT.



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DOWGILE


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Thanks very much smile  Yes of course it should be funds introduced no 

Kind Regards

-- Edited by DOWGILE at 17:01, 2009-01-23

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