What happens, if a client comes, and brings his records to his bookkeeper, but there are source documents missing, and he has lost some of his invoices, and some other source documents. Obviously, he can not have a double entry for his records, so what is the best approach? Especially for a sole trader. Does the bookkeeper need to use a single entry by doing incomplete records calculation, to find his profit, for the particular period in question, or else?
Thank you for your response!
DGA
-- Edited by dga on Friday 1st of July 2011 12:44:34 PM
If he uses a bank account for company business then you could use that even if you dont have the invoices etc.
If he doesnt have a exclusive business account and instead adopts the "invoices/receipts in a box" method then all you can do is go with what he has.
Once you have prepared accounts then you could discuss the accounts to see they are reasonable and make any adjustments that your client thinks are necessary.
At the end of the day it is self assessment so any adjustments that they make are their responsible to justify to HMRC if the question is raised.
