New Just come across this site fist can i say i am not a Bookkeeper so hope its ok to ask for some help.i started my business April 2010 and purchased a copy of Sage accounts and i have been following the book that i got with it . So i could do my own accounts and all has been ok. I got behind with my paper work as you do and so i have only just run the year end for 31stMarch 20011
All seems okwhat i would like to know i have now looked at the Nominal Ledgerand can see that i now have an amount in the profit and lossdo i just level it there or do i have to move it also when i look at the Balance Sheetat the bottom it says
Capital what i put in to start
Drawings that i have had
Reserves what is this should i have this amount somewhere as i dont and what should i do with it i know its the same as what is in the P/L but i dont have that much left only what is in my bank and it dont add up to that amount
Also if i have to pay any tax do i have to put this in to my sage
Sage moves the balance of the P&L nominal codes to the P&L account as part of running the year end process. I'd leave it there, unless you had a particular/special reason for moving it (which it doesn't sound like you do)
You don't say if you are a limited company or a sole-trader, but depending on which you are, depends on what you should have for capital. (eg, if you are a ltd company, you would normally have share capital. If you are a sole trader, you would put in whatever capital you put into the business (if any). Drawings is what you have taken out (assuming that you've input this correctly into Sage). If you trade through a ltd co, then it would actually be dividends or a capital reduction. Reserves is generally the accumulated profit & loss, but could include other things, too (eg. share premium reserve - I'm guessing this is probably not the case, though)
Your P&L is not necessarily going to be the same as your bank balance! (in fact, it rarely is)
-- Edited by Figurate on Wednesday 3rd of August 2011 12:09:46 PM
