The Book-keepers Forum (BKF)

Post Info TOPIC: Sage 50 Instant Accounts


Senior Member

Status: Offline
Posts: 101
Date:
Sage 50 Instant Accounts
Permalink Closed


I am a small landlord, when I take drawings I allocate to 3050 Drawings.

I made a loss last year as it was only my second year of trading.

I've just noticed when I ran my year end it carried my drawings intro this financial year, why would it do this?

 

Thanks,

Michael



__________________


Expert

Status: Offline
Posts: 1501
Date:
Permalink Closed

Probably because is set up in the chart of account as a balance sheet account and not getting rolled into the opening balance of the new year.



__________________

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.



Master Book-keeper

Status: Offline
Posts: 8646
Date:
Permalink Closed

Yes as Mark says - its a balance sheet account. Only the P&L accounts are cleared down during the year end process.

__________________

 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



Senior Member

Status: Offline
Posts: 101
Date:
Permalink Closed

Thanks, How could I change this?



__________________


Master Book-keeper

Status: Offline
Posts: 8646
Date:
Permalink Closed

You can't change it. drawings should be in the balance sheet. It is not an expense so not in the P&L. You need to get year end adjustments from your Aucountant. These will need to include any depreciation etc and should be posted on the last day of the year before you lock sage down or your brought forward figures will be incorrect.

__________________

 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



Senior Member

Status: Offline
Posts: 101
Date:
Permalink Closed

So once all adjustments are done, drawings are brought forward every year in Sage, then the following year you need to subtract the previous year?

__________________


Senior Member

Status: Offline
Posts: 259
Date:
Permalink Closed

Hi Michael,

Assuming you're using the standard chart of accounts in Sage the 3000 series of nominal codes all represent aspects of "ownership interest" of some sort or another. 3010 is capital introduced by the owner, 3050 is capital withdrawn ("drawings") by the owner. If you wish to have these set to zero at the start of each year, you would journal the previous year end balance to the 3000 account. The "Capital and Reserves" total remains the same as the journal is just shifting figures around within the overall heading. Some accountants will include these clear downs as part of the adjustment set they provide at the end of the year to prepare for the next year. If this adjustment is done, no need to subtract the previous year.

HTH.

Regards,




__________________

Ian

Ian Brown FCA
Onion Reporting Software Ltd

www.onionrs.co.uk

Sage accounts in Excel. No set-up necessary. Free 30 day trial.



Senior Member

Status: Offline
Posts: 101
Date:
Permalink Closed

Perfect, thanks

__________________
Page 1 of 1  sorted by
 
Quick Reply

Please log in to post quick replies.

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