[chinkstaz_123]

Hi there this particular part of the question stumped me when filling the balance sheets:

7. Bought a vehicle for $14 000 plus $1 400 GST, paying $4 000 cash, with the blance funded by a loan from CAG Finance Co.
With GST being the Good Service Tax of Australia.

What do I input in assets and liabilities.
Then what do I do with capital?
Thanks

[morgaine300]

Are you in Australia? I was going to leave this for someone hopefully in Australia because rules can be different in different places. But I've noticed there's not a whole lot of activity on this topic. (Or maybe people are just behind by several days, I don't know. Sorry, I'm new.) But I can give you what the answer would be using U.S. rules.

Taxes would be considered part of the cost of the vehicle. Basically, the price, taxes, transportation, insurance, etc. anything that it took to buy, get, install, etc. an asset counts as part of the cost. That's the part that may not be the same in another country, but the rest should be.

You paid out cash. What kind of account is that, and are you increasing or decreasing it? Then what is the balance that's owed? That's what your loan is for. What kind of account is that when you OWE something? And then remember that you must balance both sides. So see if your net change on one side equals the net change on the other side.

Give this a try. If you make an attempt to do it, someone can let you know if it's correct or not.