I want to post an accrual in VT relating to accounting & bookkeeping fees. The period end is 5th April 2012 but I can't seem to get the dates right for posting when I do the RJN entries. Can anyone help?
With accountancy fees I find it difficult to know when the client will actually part with the cheque so rather than entering reversing journals I would actually journal those as
Journal an entry on the 4th of April :
Dr : Expenses: Accountancy Fee's Cr : Creditors: Accruals
Which would be reversed on actual payment of the fee's the following year so
Dr : Creditors: Accruals Cr : Bank: Current Account
That they remain as an accrual until paid is correct.
kind regards,
Shaun
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
if a business is to be round up within twelve months of the period end (as evidenced here by the actual closure of the business) then the accounts must be prepared on a break up rather than accruals basis.
If you are only doing the bookkeeping rather than the accounts then it is correct for you to include this as an accrual (as the business was still a going concern at the time of the period end) but the accountant will need to make some adjustments to things such as carrying values of assets (from historic to realisable values) as at the period end in order to prepare a set of accounts that properly represents the financial status of the business.
For now carry on as normal with your entries for 2011/12 which the accountant will sort out.
For 2012/13 you should not post accruals and prepayments as there are no future periods. All expenses are current period expenses regardless as to the period that they actually refer to. (for instance insurance running 12 months from June would all be recorded within 2012/13 rather than being split).
HTH and sorry to hear about the loss of a client. Hope that you gain several others to make up for your loss,
kind regards,
Shaun.
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
