I hope someone can help me out m thanks!
Client has purchased a few computers on finance lease for £5,800 including VAT. Lease rentals are £204 per month plus VAT. I understand that with finance lease, VAT is reclaimed monthly on rentals. What happens to the VAT on the cost of the computers?
Dr Asset £4,936-17 (exc VAT)
Cr Lease Creditor £5,800-00
Dr ????? £863-83 (VAT)