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Post Info TOPIC: Just can't get it clear in my head - help with end of jr journals from 1 - 2 yrs ago
Sue T


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Just can't get it clear in my head - help with end of jr journals from 1 - 2 yrs ago
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Got this message today from one of my clients accountants.  The journals are back to 07/08ashamed and there were some more from 08/09 to which is what this message relates I believe  but the accountant told me that she wanted everything posted at 1/4/09 so I am some what shocked that she didn't realise the TB wouldn't agree but I would like some comments on this: this is what she wrote after receiving the TBal. (in blue)
Clients end of year was 31 March 09. So does one presume that she wishes the 3 journals she told me to post at 1/4/09 to be posted on Sage at 31/3/09?, if so why didn't she just say so in the message?  Sorry not thinking straight too much working into the early hours.yawn So just want some reassurance that I am not losing the plot! I wouldn't mind but the previous bookkeeper is to blame as she didn't post any journals for any previous tax yearsconfuse.

Here are the journals:-

Accountancy DBT £655 
Accurals CRT £655                    Effect on P&L (£655)

Corp tax DBT £3166.00
Provision DBt £11.89
Corp tax chgd Crt £3177.89      Effect on P&L £3166.00

Prepayment Dbt £37685
Income        Crt £ 37685 (to include WIP for yr end.  Effect on P&L £37685

Sue,

The reason for the difference is that the Profit and Loss figure was brought forward from the prior year before some of our journals were put through.  Therefore these journals have been put to this years Income and Expenditure codes, rather than last years. 

This is easily corrected.  The three journals in question are Journals 1 to 3 from the second sheet of adjustments which we sent to you - I have attached the schedule we originally sent you.  Use journals to remove these figures from the individual income and expenditure codes, and instead put them into the P & L brought forward code.  This will correct the balance.

 

Once you have done this please send me a copy of the new TB as at 1 April 2009.

 


-- Edited by Sue T on Thursday 25th of March 2010 10:58:56 PM

-- Edited by Sue T on Thursday 25th of March 2010 11:10:49 PM

-- Edited by Sue T on Thursday 25th of March 2010 11:38:31 PM

-- Edited by Sue T on Friday 26th of March 2010 12:12:16 AM

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Davey


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Hello Sue.

Can you find out if she is asking for the above Journals to be reversed.

If it is the Case


You can Credit Accountancy 655

Debit Accruals 655

Debit Corp Tax
Charged 3177.89

Credit Corp Tax
Provision 11.89


Credit Corp Tax 3166

Debit Income 37685


Credit Prepayments 37685


If you Take the the above figures into consideration

Income 37685

Less

Accruals 655


Less Corp
Tax 3166


Profit & Loss 33864


Hope this helps in some way This may be what the accountant requires but other members
will assist you also.

regards.










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David
Sue T


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Hi Davey

I have no probs reversing the journals but just worried about the dates to do it at as she was insistant before that it be done at 1/4/2009 which would just reverse out what she already asked me to do, if I do it at the same date.

Sue

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RobH


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Hi Sue,

there was a thread recently about year end journals and whether to post last day of year or first of following year. I was in the camp of last of current year as such things like accountancy accrual relate to that year, however it seemed that lots of accountants were telling the bookkeeper to post as first day of following year. I still think all these transactions should be dated end of year though. If you were putting accounts on to a computerised system for the first time then you would want opening balances as at 1st of the month, but theses are all year end adjustments.

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www.accounts-solutions.com
Sue T


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Rob am I thinking that she isn't happy with the B/F P&L figure or is it the figure at 1st April that she isn't happy with? - I do find some accountants are so vague.


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RobH


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Hi Sue,

what probably has happened is that she took the figures you gave her and then made a few adjustments for that year, ie accounts accrual, CT etc. So the accounts will be correct but they will only match the bookeeping for that year if the journals are posted in that year. For some reason she has advised you to post at 1st of the following month, which that theer will be figures relating to last year reflected in this year. Of course she could just make further adjustments, eg if her accountancy bill has gone up £50 then she will dr accountancy £50 and credit Acruals £50. And i guess this is how some accountants will work. I prefer that the previous year's bookkeeping is correct and therefore the opening balances will be right and match up with the Balance Sheet. But I agree getting conflicting directions from the accountants is confusing. But she does seem to want you to reverse the journals and re-post to end of last year.

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Sue T


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Hi Rob

That was my interpretation but last night my brain just couldn't work out why the accountant was reversing journals she had already told me to put on at 1/4/09.

-- Edited by Sue T on Friday 26th of March 2010 11:22:05 AM

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RobH


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I can't understand why most accountants seem to be giving this instruction either, still looks like its sorted. Speak later.

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