Hi - in our accounts last year I underprovided for Corporation Tax. When the CT was paid this year I have therefore been left with a balance on the CT liability account. Where does this get posted to in Sage, and where is the extra CT paid shown in the accounts?
In the year end accounts, the prior year underprovision will be included as part of the corporation tax charge in the profit and loss account. The notes to the accounts will then show the breakdown between the current year charge and the underprovision.
If you have a corporation tax charge nominal code on Sage, you can journal the underprovision to this code from the liability account. If you don't, you might just want to leave it where it is and then, when the year end accounts are prepared, whoever does this can make the appropriate adjustment.
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Pearce & Co - Chartered Accountant and Chartered Tax Adviser
