I am looking for a bit of advise... I have taken some work from a relative who has previously done his own bookkeeping on sage and he has asked if I can do 2011/12 for him.
His year end is 31.03.12, I have made the necessary depreciation journals etc, but once completed the year end the n/c 3200 has a balance of 323.82.
After looking into this account, he has posted depreciation for 2010/11 to 3200 which totals 350.19.
I am completely confused on how to deal with this as the expense should have been posted to 8000 for that year and now is sitting on the balance sheet.
After looking into this account, he has posted depreciation for 2010/11 to 3200 which totals 350.19.
I am completely confused on how to deal with this as the expense should have been posted to 8000 for that year and now is sitting on the balance sheet.
The posting shouldn't make any difference to the current position. If your relative had posted the depreciation to the correct profit and loss code, it would have been cleared to the reserves accounts (3200) when he ran a year end for 2010/11. The £350.19 would have been reflected in the 'Ledger Year End' figure for 31/03/2011. Instead, it's just being shown separately in the reserves account.
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Pearce & Co - Chartered Accountant and Chartered Tax Adviser
Isn't 0050 a fixed asset cost code? I would have expected depreciation to have been credited to 0051.
If the profit and loss reserve figure on Sage at 31 March 2011 matched the reserves figure per the 2010/11 year end accounts, then you don't need to do anything (assuming that all of your other opening balances are also fine).
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Pearce & Co - Chartered Accountant and Chartered Tax Adviser
I should have asked whether this is a sole trader business or a limited company as that will affect the nominal codes that you have on Sage and what the bottom half of the balance sheet looks like in the accounts.
The general principle is still that Sage should reflect the year end accounts and if it did at 31 March 2011, then things are fine and you don't need to worry about the misposting.
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Pearce & Co - Chartered Accountant and Chartered Tax Adviser
Its a sole trader, the amount is showing on the balance sheet for 2012/13.
In theory - he has posted this to the wrong account and sage has not cleared the balance down? I don't need the depreciation charge for 2010/11 sitting on the balance sheet so i thought about making a journal to correct but I don't want to effect previous years accounts!?!
