I am having a nightmare trying to get the retained profit section on the CT600 to balance with what is on the balance sheet. Basically even though the figures all look correct and appear to be balancing from my calculation, I still keep getting an error message saying:
''X ERROR:The retained profit at 2011-06-30 must tally with the value in the balance
sheet. Please check and amend your entries.''
I have checked through the trial balance and everything seems correct, they are quite straight forward accounts. The only thing that might be incorrect is the Corporation account in ''Creditors''
After paying the tax charge for the year there is an overpayment of £567 in the corporation tax account, this is for late filing/payment fines.
So the last payment to be made out of the bank was £3,600 this is when there was only £3,032.91 left of the liability. This is how I have re posted it.
Cr Bank £3,600.00
Dr Creditors (Corporation tax) £3,032.91
Dr Expense (HMRC Fines & Penalties) £567.09
The only thing is if I add this back to the profit and loss when I fill in the CT600 it then means that my net assets/liabilities do not balance with the bottom of my balance sheet. How can transfer it so that it all balances?
I originally posted a debit of £567.09 to the directors account, would this work better than expensing?
OK I've had an idea. What if I add the penalty back on the CT600 but then so it balance's in the capital and reserves reduce the reserve of profit and loss by the same amount?
