I have been asked to help with my local clubs accounts. All the taking from the bar, jackpot, pool table, door, etc have been posted to the bank as receipts, even though staff wages and other item had been paid from this cash. No bank rec seemed to has every been done - wouldn't balance even if they had done this. According to SAGE they have over £22.000 in the bank but according to the bank statement they have about £5,000. It would be impossible to go back over the years to correct this. There year end is Dec 2011 which might be a good time to start again. what Jounal entries should I make and where - CR the Bank and DR where. Grateful for any advice.
-- Edited by LorraineHB on Friday 25th of November 2011 10:46:40 PM
-- Edited by LorraineHB on Friday 25th of November 2011 10:47:24 PM
Do they have an accountant? It might be better to hand everything over to him/her for this year end and start afresh in January with a full list of correcting entries?
The bank balance on Sage and the actual bank balance won't always agree due to timing differences with cheques/deposits etc, but the difference of £17,000 seems a little excessive!
What does your petty cash account show? Is there a corresponding value or how have the payments for staff wages etc been posted?
I'm inclined to agree with Pauline that an accountant can sort out this year then give you genuine opening balances for year commencing January 2012...
