08-19-2006, 10:21 AM
Trying to tidy up a clients set of books at the moment.
The books of account are still being written up.
However, here's a good one.
My client has a series of payments leaving his bank account which were never posted to his creditors ledger/bank (cash), and for which no invoices were received or posted to his profit and loss account.
I can post the payments (credit Bank /ac, debit creditors control) but I need to account for this in my profit and loss account.
I am correct to accrue the invoices and to accrue the V.A.T. - in order to get the profit and loss account right? (he won't receive the invoices before yearend).
The books of account are still being written up.
However, here's a good one.
My client has a series of payments leaving his bank account which were never posted to his creditors ledger/bank (cash), and for which no invoices were received or posted to his profit and loss account.
I can post the payments (credit Bank /ac, debit creditors control) but I need to account for this in my profit and loss account.
I am correct to accrue the invoices and to accrue the V.A.T. - in order to get the profit and loss account right? (he won't receive the invoices before yearend).