Record keeping on VT Cashbook

[Newchodge]

I use VT Cash book for my personal finance records and I always struggle with the right way to record income.

I receive £1,000 into my bank account, made up of £1200 pension and -£200 income tax.

If I enter the total amount as 1200 as pension income and -200 as income tax, it shows 1200 received into the bank. Is there a proper way to enter it, please?

If I enter 1000 as money into bank and 200 as income tax, it shows -1200 as pension received.

 

[UK Contractor Accountant]

Enter a receipt for £1200 and payment for £200. Reconcile the 2 entries off with the bank statement using the reconciliation function.

 

[Paul Kelly ICHYB]

MAYBE record the 1200 payment (which you did get) gross and then allocatye £200 into tax account?

 

[VioletGray]

You're close! Try splitting pension and tax, then match bank deposit.

 

[MyAccountantOnline]

I use VT Cash book for my personal finance records and I always struggle with the right way to record income.

I receive £1,000 into my bank account, made up of £1200 pension and -£200 income tax.

If I enter the total amount as 1200 as pension income and -200 as income tax, it shows 1200 received into the bank. Is there a proper way to enter it, please?

If I enter 1000 as money into bank and 200 as income tax, it shows -1200 as pension received.

You split the transaction - you enter the £1,000 receipt (so that it is correct and matches the statement) and in the analysis you record 1,200 pension and it'll then create a second line for -£200 which you can record as Income tax. You can split any entries where a transaction relates to more than one item.

 

[Newchodge]

You split the transaction - you enter the £1,000 receipt (so that it is correct and matches the statement) and in the analysis you record 1,200 pension and it'll then create a second line for -£200 which you can record as Income tax. You can split any entries where a transaction relates to more than one item.

The trouble with that is it then records 1200 pension as a negarive and 200 tax as a positive.

It looks as if it can't be done as a single transaction. Thanks everyone for their thoughts.

 

[MyAccountantOnline]

The trouble with that is it then records 1200 pension as a negarive and 200 tax as a positive.

It looks as if it can't be done as a single transaction. Thanks everyone for their thoughts.

That's correct the income is a credit (minus) and the tax is a debit.

It can definitely be done I used to use it regularly and I've just tried it too.

 

[Newchodge]

That's correct the income is a credit (minus) and the tax is a debit.

It can definitely be done I used to use it regularly and I've just tried it too.

Am I just getting my brain tangled around between credit and debit on double entry?

 

[MyAccountantOnline]

Am I just getting my brain tangled around between credit and debit on double entry?

Yes you are

 

[numbersrule]

Am I just getting my brain tangled around between credit and debit on double entry?

Yes, in double entry you CR an Income account to give a positive amount as income.
Tax is an 'expense which takes a DR to give a positive number in that account.

The mnemonic which I had drummed into me is DEADCLIC.

I.e. Debit
drawings
expenses
assets
dividends

and

Credit
liabilities
income
capital