I am currently doing some voluntary accounts which used to be done on a Cash Book on Excel. I am trying to put these into Sage. I am trying to do Management accounts so use accruals and pre-payments. I have an electricity bill from EDF in February 2019, £443.29 relating to period 27th August 2018 - 7th February 2019. On the last bill was a credit of £218.96 and payments of £355.00 (£71.00 of this was paid in January 2019), was made before the bill was produced (A standing order is produced monthly). The amount which was a credit was not reflected in the 1st January 18 - 31st December 18 accounts.
I therefore have the opening balance of £502.96 (218.96 + 284 (4 payments of £71.00) and I have put this to pre-payments at 01/01/2019, is this the correct treatment? I have then put the invoice in the supplier account on the purchase ledger for £443.29. The £71.00 payment from January is also in the supplier account for January 2019. This then leaves £130.67 in credit as per on the bill (218.96 + 284 + 71) - 443.29 = - 130.67
With this 443.29 I want to do an accrual backwards as it relates to a previous period however I have the £502.96 in pre-payments?
Similarly going forward I still have a credit on the account so should this all be in pre-payments and I can then split this over the months? Slightly confused :S
Hi Mark
Please can you do an intro - we always ask newbies.
Usual stuff - what prof body do you belong to, do you work for yourself or in a practice/ firm, who is your MLR with, are you a bookkeeper or accountant, what qualifications, how long in role, where up to in your studies-what exams passed/with what body/in midst of doing, where based, what you did before this role? That sort of thing. Helps get to know you but also how best to pitch answers.
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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
