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Post Info TOPIC: Aged Debtor Balances and the P&L
betty


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Aged Debtor Balances and the P&L
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Hi

 

I am new here and was wondering if someone might be able to enlighten me?

Theres probably a very simple answer.

Could someone please explain to me as to why the turnover figure on my Aged Debtor Report is different from the Turnover figure on my Profit and Loss Report?

Thank you

 



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M. Small
mushroom


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Did you sell any assets? if so these sales should have deducted your asset accounts, and wouldn't show up on a P&L.

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betty


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After looking into this for hours, I have come to the conclusion that I should not reconcile the P&L Sales to the Aged Debtor Turnover, instead I should be looking at the Trial Balance figure and comparing.

The reason for this I believe is because the Aged Debtor will only pick up sales invoices,reciepts,credits,discounts.

Whereas the P&L will include other tranaction types such as JD/JD etc... therefore the figures will never agree.

Please correct me if I'm wrong?

Thank you



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M. Small
Robert Pearce


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Yes, you're right.  If there are journal entries or bank receipts in the sales nominal codes, then they won't match the turnover figure on the aged debtor report.



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Pearce & Co - Chartered Accountant and Chartered Tax Adviser 

www.pearceandcoaccountants.co.uk

These comments are outline only and are not a substitute for specific professional advice.
betty


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Thank you both so much for your help.

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M. Small
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