The Book-keepers Forum (BKF)
The Book-keepers Forum (UK) -> VAT, Payroll & Tax -> Year End Adjustments - how to do?
Post Info TOPIC: Year End Adjustments - how to do?
Cheshire


Master Book-keeper

Status: Offline
Posts: 8646
Date:
Year End Adjustments - how to do?
Permalink Closed

My clients Year end is May. The accountants had not finished the year end accounts but said I could do the Year end routine/process on Sage - so I did.  

I was expecting to get opening balances from the accountant but he has instead sent me a list of adjustments eg

     Dr                        Cr             Sage Account                    Description

1) £3620.50                              Use of home                      Use of home

                        3620.50             2302 (Dir loan)                 Use of Home

2) 2043.26                               Motor & travel                    Motor & Travel paid by Director

                        2043.26            2302                                  Motor & travel paid by Director

3) 1475.00                                Accountancy                       Accountancy Accrual 2012

                       1475.00              Accruals                             Accountancy Accrual 2012

4) 50.00                                     2300 (Dir Loan)                 Share capital

                        50.00                 Share Capital                     Sare capital

AS you can see some of these adjustments are to the actual P&L account as well as the Balance sheet.

My question is - can I just key these after my Year end sage procedures aready done? Would this skew this years figures? (would I then need to do anything else?)  Or should I key them before the year end on Sage (I fortunately have a back pre y/end was run, so can do a restore) and THEN re-run the year end?

Sorry for lengthy note but hope the egs I gave make sense

 

Cheshire



__________________

 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position
K3 Accounting


Veteran Member

Status: Offline
Posts: 71
Date:
Permalink Closed

Fine to do after you have run the year end.

Use the last day of the company year then post your entries as a journal. Sage will warn you that it us outside current year but just click yes and it will be fine.

Don't forget to reverse the accrual when the accountants bill arrives.

Once you run a report you should see the figures make sense.

Ken

__________________

http://www.K3accounting.co.uk

MarkS


Expert

Status: Offline
Posts: 1501
Date:
Permalink Closed

Personally I would get the accountant to come out and post on.  I have always done this as part of my service.

If they dont or will charge extra then just post as a journal dated 31/05/12 (code as T9 so no VAT effect) and code all the profit and loss items to 3200 (retained p&l).  Then get the accountant to forward you an opening TBL from their system and compare it with the SAGE b/f TBL.  The two should be the same.

Regards

Mark



__________________

Mark Stewart CA

http://stewartaccounting.co.uk/

Providing accounting, bookkeeping, payroll and tax services to small and medium sized businesses across Central Scotland and beyond.
Cheshire


Master Book-keeper

Status: Offline
Posts: 8646
Date:
Permalink Closed

Thank you both. Im just struggling now a little with two of the adjustments instructions from the accountant:-

1) Dr Cr Sage a/c Description
8000.00 Taxation P&L CT Y/e
8000.00 Taxation Creditor CT Y/e

Should I:-
-Debit Corp Tax (3290) and Credit Corp Tax Liab (2160) with adjustment, THEN
- Credit Corp Tax (3290) and Debit retained profit (3200) with adjustment, THEN WHEN THE CHEQUE is presented for payment I can Cr Bank and Dr Corp Tax Laib account (2160) ?

2) Dr Cr Sage A/c Description
3400 Dividends Dividends
3400 2300 Dividends

NB - The dividends have already been deduced by Directors throughout the year (hence whey the entry was in Director's Loan);

Should I still use proposed dividend account and:-
- Credit Dividend Liability (2340) and debit Proposed Dividend (3210)
- Credit Directors loans (2300) and debit Dividend Liability (2340)
- Credit Proposed Dividend (3210) and Debit Retained P&L (3200) ?

Thanks again for your assistance



__________________

 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position
MarkS


Expert

Status: Offline
Posts: 1501
Date:
Permalink Closed

Re your additional adjustments

Taxation £8k

Dr P&L Res AC 3200 £8k

Cr CT Bal Shee Liabilty AC 2160 £8k

When you pay then you raise bank payment to AC 2160 to clear the liability in the year paid.

Dividends

Dr P&L Res AC 3200 £x

Cr Directors Loan AC (if they have been declared as dividends at year end and adjusted through DLA by accountant)

All adjustments dated last date of the financial year ie 31/05/12

Regards

Mark



__________________

Mark Stewart CA

http://stewartaccounting.co.uk/

Providing accounting, bookkeeping, payroll and tax services to small and medium sized businesses across Central Scotland and beyond.
Cheshire


Master Book-keeper

Status: Offline
Posts: 8646
Date:
Permalink Closed

Brill, thank you once again.

__________________

 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position
Page 1 of 1  sorted by
 
Quick Reply

Please log in to post quick replies.
The Book-keepers Forum (UK) -> VAT, Payroll & Tax -> Year End Adjustments - how to do?
Tweet this page Post to Digg Post to Del.icio.us
Members Login
Username 
 
Password 
    Remember Me  
©2007-2024 The Book-keepers Forum (BKF). All Rights Reserved. The Book-keepers Forum (BKF) is a trading division of Bookcert Ltd. Registered in England Company Number 05782923. 2 Laurel House, 1 Station Rd, Worle, Weston-super-Mare, North Somerset, BS22 6AR, United Kingdom. The Book-keepers Forum and BKF are trademarks of Bookcert Ltd. This forum is a discussion forum only. There will usually be more than one opinion to any question and any posting should not be viewed as a definitive solution. No responsibility for loss occasioned to any person acting or refraining from action as a result of any posting on this site is accepted by the contributors or The Book-keepers Forum. In all cases, appropriate professional advice should be sought before making a decision. We reserve the right to remove any postings which are offensive, libellous, self-promoting or engaged in covert marketing. We will not notify users of removals. The views expressed in the forum posts are those of the individual and do not necessary reflect or agree with those of The Book-keepers Forum. Any offensive or unsuitable posts will be removed by the moderators. Any reader of this forum can request for a post to be looked into by sending an email to: bookcertltd@gmail.com.

Privacy & Cookie Policy  About