hello, I'm looking for a help with the taxation account. I had opening balances from a previous bookkeeper that include a position of 900. I have added it to my Sage 50 as an opening balance and when I got the the end of my financial year Sage added up this opening balance to my corporation tax amount for the current tax year. So now the taxation account is showing a higher figure than it should. How do I fix it please? Thank you
I'll have a stab at 9001 being the nominal in the P&L for tax. I'll assume the 900 is a cash value and not a typo leading, or misleading, from the post title.
From what I am getting from your post I'll guess rather than conclude that the provision from the previous year was under by 900.
When the actual payment has been made this period, the bank payment having been debited to the Corporation Tax liability a/c leaves a balance of 900 in that a/c.
Thus - before this periods provision is credited to the B/S
£900 is DR to the P&L
£900 is CR B/S
to account for the under provision, resulting in that being added to the new tax figure this period.
I suppose you could set up a 'over-under provision' a/c within the P&L for future use.
If I've misunderstood the question I apologise.
-- Edited by abacus12345 on Saturday 21st of January 2017 12:50:41 AM
__________________
Johnny - Owner of an overly-active keyboard.
A man who can read, yet doesn't, is in no way wiser than a man who can't.
Hi, thank you for your responses, I was half asleep when I was posting it (sorry), the case is sorted now (it was a simple thing...) and 9001 is a nominal code in Sage 50 called taxation. That's were corporation tax was accounted for by a previous bookkeeper. Thank you again
