I have received an invoice dated 30th December 2020, however the goods were not received until January. Please can you advise the necessary journals required in 2020 financial accounts?
I have received an invoice dated 30th December 2020, however the goods were not received until January. Please can you advise the necessary journals required in 2020 financial accounts?
Many thanks in advance,
Jacky
Apologies thought you was a sole trader on your other post that is why i questioned how late the invoice was
On the Invoice date Journal in Debit Expense category Credit Accruals
__________________
Doug
These are only my opinions of how I see things and therefore should not be taken as advice
Thanks for your reply, but I am a bit confused because as the goods were already booked in, in December 2020, the expense category would already be a debit.
Thanks for your reply, but I am a bit confused because as the goods were already booked in, in December 2020, the expense category would already be a debit.
why is your accountant not helping with this? If you are confused about this, what else could you be getting wrong? What do you mean booked in? did you physically have the goods in your possession or had they been despatched. What was the credit to your debit?
Thanks for your response although it appears to me that it comes across as condescending.
I have been book-keeping for many years, albeit self taught and have a very good understanding of book-keeping, via sales, purchases, vat and credit control. The company that I work has a huge turnover and I am responsible for ensuring that everything reconciles, which it does, so I find your response quite hurtful The accountants have always dealt with fixed assets, prepayments and accruals but in 2020 I took responsibility of the FAR and prepayments and understand what is required. The only grey area for me seems to be accruals.
Apologies to Doug on my response to him as I was thinking of another query.... He is correct with his journals. Debit the expense and credit the liability account.
Invoice dated 30th Dec 2020
Goods booked in Jan 2021
Yes, the accountants could help with my query but I thought it would be nice to liase with others. Isn't this what the forum is about?
Thanks for your reply, but I am a bit confused because as the goods were already booked in, in December 2020, the expense category would already be a debit.
Apologies, please ignore my response above as I was thinking of a different scenario. Your journals are correct. Many thanks.
Thanks for your response although it appears to me that it comes across as condescending. I have been book-keeping for many years, albeit self taught and have a very good understanding of book-keeping, via sales, purchases, vat and credit control. The company that I work has a huge turnover and I am responsible for ensuring that everything reconciles, which it does, so I find your response quite hurtful The accountants have always dealt with fixed assets, prepayments and accruals but in 2020 I took responsibility of the FAR and prepayments and understand what is required. The only grey area for me seems to be accruals.
Apologies to Doug on my response to him as I was thinking of another query.... He is correct with his journals. Debit the expense and credit the liability account.
Invoice dated 30th Dec 2020 Goods booked in Jan 2021
Yes, the accountants could help with my query but I thought it would be nice to liase with others. Isn't this what the forum is about?
Regards,
Jacky
To be fair on reading your other post you looked like a business owner and you did not add to Dougs comment to clarify, why not just say earlier you are a bookkeeper. Prepayments and accruals work in the same way. If you have grasped one it is not diffifult to grasp the other, but there have been posts on here that cover it quite substantially in the past from a training perspective. Of course having everything reconcile doesnt mean it is right. I dont think you have it right now. Year end Dec. Invoice Dec. Did not get the goods until January. But you are not helping 'playing' with the words you were asked. You might have found Maat's response condescending, I dont agree, he asked you the right questions, which you have now chosen not to answer properly. Or did the goods arrive in December. You post has conflicting information.
-- Edited by AC on Tuesday 23rd of February 2021 11:29:12 AM
Thanks for your reply, but I am a bit confused because as the goods were already booked in, in December 2020, the expense category would already be a debit.
Apologies, please ignore my response above as I was thinking of a different scenario. Your journals are correct. Many thanks.
Which is correct? If goods received Dec and invoice Dec you would not need an accrual.
My response to Maat regarding being condescending was relating to his comments... why is your accountant not helping with this? If you are confused about this, what else could you be getting wrong?
I had intentions of going back to Dougs response and apologise to him for my response to his answer, as he had given me the correct answer to my original post, and I did straight after my response to Maat.
I also didn't realise that I needed to explain that I was a book-keeper, after all it is a book-keepers forum.
You have just stated I dont think you have it right now. Year end Dec. Invoice Dec. Did not get the goods until January. I had stated in my response to Maat that the Invoice was dated 30th Dec 2020, Goods booked in Jan 2021 Sorry, how am I playing with words and how did I not answer Maat properly? I had corrected myself?
Apologies if I confused any of you with my second response but I did make it clear afterwards. Hopefully I will be able to look through older posts on this subject.
Thanks for your response although it appears to me that it comes across as condescending.
Was not meant to be. Apologies.
Nothing else to add to what AC has said.
Thanks Maat, I am a sensistive person, can't help it. I also apologise to you for confusing you by getting in a pickle with my reponse to Dougs advise.
