Using Transactions Only To Reflect The Chattel Mortgage

The main advantage of using this option is that you do not have another account to reconcile each month. The main disadvantage is that accountants may find it difficult to find all the information they need for the Statement of Position and Balance Sheet. 

Below are suggested codes with appropriate GST categories that should be used when entering transactions.

Below is an example of how you would record a Chattel Mortgage: 

Your business has recently purchased a new ute under finance after trading in the old ute. A deposit was made on the purchase. The information of the purchase is as captured in the below table: 

The only information available is the tax invoice, and the accountant wants the transaction to be kept simple as they will do adjusting entries at tax time. From the information in the above table, enter the purchase in Agrimaster against the codes in the table below. This is the simplest method of recording a Chattel Mortgage. The subsequent repayments will all be coded to Chattel Payments. 

Your accountant will adjust for the interest and other fees involved at tax time.