I've just starting doing some bookkeeping for a friend as her bookkeeper has left. When I've come to do the year end I've noticed that there is a balance in the purchase tax control account but the company doesn't pay VAT, I think the previous person has got confused when she's keyed an invoice that showed VAT. My question now is how to amend this as the year end accounts have already gone off to the accountant. Its various different nom codes such as gas, phone, office supplies etc. I know I need to do a journal entry to take the balance out of the purchase tax control account but then I'm stuck. Any help would be very much appreciated.
Would just leave it to the accountant to sort out when they do the accounts. I assume balance relates to items before the year end that the accountant now has?
If so the accountant will sort out when they do the accounts. You should get them to post on opening balance adjustments onto your system to tidy up so your accounts agrees to the final signed accounts at the start of the current year.
It does relate to items before the year end, will ring the accountant next week when I am back in her office and check what he wants to do, thanks MarkS
