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Post Info TOPIC: Incorrectly recorded as sales - prior year
Leger


Master Book-keeper

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Incorrectly recorded as sales - prior year
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 I'm currently doing 20-21 accounts for a sole trader.

I've spotted that a couple of loans have been recorded as income in the 19/20 accounts totalling 3.5k.  Also interest to be added to be added to these and another loan (correctly recorded) totaling c£1200.

Turnover for that year was 97k.  Is that considered material enough to redo 19/20 accounts or can I tag on to 20/21 accounts?

I hate Paypal as they lump these loans into the sales for that month and with them being small amounts I never spotted them.  No excuse for missing the interest on the loan recorded correctly though.  



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John 

 

 

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Onion4Sage


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Hi John,

So a total of £4.7k of debits missing from the 19/20 P&L? What was the profit/loss for the year?

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Ian

Ian Brown FCA
Onion Reporting Software Ltd

www.onionrs.co.uk

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


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Agree with Ian what was the P&L for the year?

Would it be a major issue to amend the accounts?



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Doug

These are only my opinions of how I see things and therefore should not be taken as advice
Leger


Master Book-keeper

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Sorry, I forgot to answer your questions Ian and Doug.

Profit was c20k

Not a major issue to amend accounts.



-- Edited by Leger on Thursday 16th of December 2021 12:20:07 PM

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John 

 

 

 Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Onion4Sage


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Hi John,

Profit overstated by c 31%. I think I would on materiality grounds. I have no experience of how HMRC view these matters if corrected the next year. I presume they'd like their £940 in income tax a year earlier.

Regards,

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Ian

Ian Brown FCA
Onion Reporting Software Ltd

www.onionrs.co.uk

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


Master Book-keeper

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Posts: 3904
Date:
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Thanks Ian 

When I originally posted I'd not factored in the profit ratio.  Will amend last years just to be on the safe side.



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John 

 

 

 Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
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