I have a new client, he was doing all bookkeeping himself...
When I started he gave me a list of all debtors with a total of £10,737.20 and creditors with total of £7,916.48, he also passed those details to his accountant.
Few days ago I received opening balances from his accountant and to be honest I am a bit confused with the creditors figure and the deferred income account.
I've tried to contact the accountant but he doesn't reply and I would like to have those figures in the system by Monday.
There are many great accountants on this forum, so if you could have a look at the attached trial balance and help me out I would be very grateful.
Although the difference between your clients list of creditors and the accountants is £5k and this is the same as the accruals/deferred income i think this is just conincidence. Both are credit balances so the total liablity is £17,916.48.
You would need to get the accountant to give you the breakdown of their creditors figure and the client to do likewise to find out what the £5k extra in the accountants figures is for.
Today I received a reply from the accountant and he said that one £5k is a reserve for subcontractor cost and the other £5k are sales deferred to 2012 and those adjustments were made mainly to reduce the tax defer the tax liability to 2012. The accountant also sent me a list of creditors and debtors and is exactly the same as the one I received from my client.
When I enter all opening balances now, I'll have accruals/deferred income and creditors account both £5k in credit, shall I leave them as they are or any journal entries are required from me?
I've just noticed that the debtors amount is not exactly the same either - the trial balance debtors total is £450 less than the total on the debtors list. There is an invoice for £450 and I can see on the P/L account, that this amount (£450) has been written off as bad debt by the accountant, but I know that the company received that £450 payment, so what me as a bookkeeper should do about that?
