How To Record the Hire Purchase Agreement on sage line 50

1. From the Sage Line 50 toolbar, click Nominal. 2. Click Journals. The Nominal Ledger Journal Entry window appears. 3. Open the Edit menu and choose the Recall option. Choose the HIREPUR.NJR skeleton journal and post the following journal. Note: These figures correspond to the example in the Hire Purchase Agreements topic. Replace these figures with your own values. Tc Debit Credit 0050 Motor Vehicles T9 4000.00 4200 Sales of T9 4000.00 Assets The value of the old fixed asset (in this example the vehicle) has now been removed from your accounts. 0051 Motor Vehicle T9 3000.00 Depreciation 4200 Sales of T9 3000.00 Assets This removes the accumulated depreciation amount for your old asset from your accounts. 0050 Value of new T1 7007.51 vehicle 2201 Purchase VAT T1 1226.32 control 7302 Licences T9 150.00 7304 Misc. Motor T9 75.00 Exp 2310 HP Liability T9 8458.83 2310 HP Liability T9 500.00 1200 Bank Current T9 500.00 Account 2310 HP Liability T9 1300.00 4200 Sales of Assets T9 1300.00 These journals show the purchase of the new asset, the road tax, administration fees, the deposit paid, and the part exchange value received. The value outstanding on the HP Liability account is £6658.83 that will be reduced monthly by your monthly repayment value. The value remaining on the Sale of Assets account is £300(CR) which will show as a profit on the sale of the asset in your profit and loss account. 4. Click Save. Now that the hire purchase agreement for the new vehicle has been entered into your accounts program, you should now set up a recurring entry for your monthly bank payments for monthly loan repayments plus the interest charges. To Record the Monthly Hire Purchase Interest Charges 1. From the Bank Accounts toolbar, click Recurring. 2. To add a recurring entry, click Add. The Add/Edit Recurring Entry window appears. 3. In the boxes provided, enter the following information: Trans type, Bank A/C, Nominal code, Day to post, Net amount, Tax code and Tax. 4. To accept your entries, click Save or to exit without saving, click Close. You have set up a recurring entry for your monthly HP interest charges. You should now set up a recurring entry for the loan repayment. Currency Sage Line 50 automatically creates currency records for the fifteen EC countries. You can then edit these currencies as required to enter the correct currency conversion rates. Note: Your Sage Line 50 program can handle transactions involving the euro. All you need to do is set up the correct currency rates. You can also add other non-EC currencies. You can create up to 99 currencies in total and then assign one to each customer, supplier and bank record. Note: Conversion rates between the euro and EMU currencies are available from your bank or from our web site www.sage.com. Conversion rates between euro and non-EMU currencies are available from your bank. 1. From the Sage Line 50 menu bar, open the Settings menu and choose the Currency option. The Currencies window appears. 2. From the Base Currency drop down list, select your base currency for example pound sterling. 3. To return to the main desktop, choose the Close button.To Set Your Base Currency To Add a Currency 1. Open the Settings menu on the Sage Line 50 menu bar and choose Currency. The Currencies list box appears. 2. From the Base Currency drop-down list, select your company’s base currency. 3. Select the currency you wish to change, then click Edit. 4. To exit from the Currencies list box click Close. To Edit a Currency 1. Open the Settings menu on the Sage Line 50 menu bar and choose Currency. The Currencies list box appears. 2. From the Base Currency drop-down list, select your company’s base currency. 3. Select the currency you wish to change, then click Edit. The Edit Currency window appears. You can also double click on any line of the table to bring up the Edit Currencies window. 4. In the boxes provided, enter the currency details as described below: Currency, Country, EC Member, Ex. Rate, Euro Member, 1 Euro = 5. To save your entries click OK, or to abandon your entry click Cancel. 6. To exit from the Currencies list box click Close. Exchange Rates In some instances where goods are bought and sold abroad, fluctuations in the rates of exchange can occur, when converting currency to or from Sage Line 50. This can lead to discrepancies between the amount of the original invoice raised and the amount actually received or paid. To deal with an exchange rate, create a Nominal Ledger Account for Exchange Rate Variance. For example, you may use the nominal account 7906. Check that this new nominal account appears in the Overheads section of the Nominal Ledger Chart of Accounts layout you use for your Profit and Loss Report. For example, the Invoice value and Payment value may differ when you sell goods to a customer abroad or purchase goods from a supplier abroad. Sales Abroad You sold goods to a customer abroad. At the time of sale the goods were valued at the Sage Line 50 equivalent of £200.00. When the customer paid for the goods, you actually received £195.00, due to the fluctuations in the exchange rate.