I'm new here on the forum but I'm hoping someone can help. I've recently taken over the role as company bookeeper for a very small company and I am trying to get my head round the management accounts for the 2nd quarter.
I have two problems:
1. We have received a large refund on our council tax relating to previous years. Do I enter this as 'income' on Sage? And how do I treat this in the quarterly accounts? Does it make part of the profit for the year?
2. We recently sold our company car. I am not sure how to treat this, as I usually just write off a portion at the end of each year. I am not sure how to deal with the income from the car.
I would be grateful for any help - as you can tell I'm a bit of a novice but haven't got anyone to ask!
1. You should post the council tax refund to the rates nominal account in the profit and loss account. Rates must have been overstated in previous periods, and therefore you will need to account for this in the current period. Doing this will increase the current year profit / decrease any loss.
2. You need to dispose of the vehicle at cost, add back any deprecition charged and account for any monies received for the car. The difference between these will be the profit / loss on disposal. This will be shown in the P&L.
many thanks for your response. That all makes sense.
The only thing is, I have already done the management accounts for the first quarter. Would it be preferable to revise the Q1, taking in to account the refunds, or show 1/3 of it in Q2 or simply put it all within Q2 since that is when the money was received/ car sold?
