Best Of
Re: Nominal codes after VAT return
Assuming the VAT element of the invoice was accounted for correctly then a straight forward journal removing the net value from the incorrect nominal account and adding it to the correct account should be sufficient.
The internal credit/invoice re-entry method mentioned by shamilkaria is very useful when the correction is a bit more complicated or involves multiple lines/codes - but in this instance a journal is probably cleaner.
The internal credit/invoice re-entry method mentioned by shamilkaria is very useful when the correction is a bit more complicated or involves multiple lines/codes - but in this instance a journal is probably cleaner.
Re: Next steps
Hi @Tanya0997
Trust me believe in yourself. I am the same don't worry I don't believe much in myself haha.
The only way you will get experience is if you are working in accounts. Speak to your manager or senior and ask them could you get involved in the accounts prep or management accounts. You need to have a chat with them and let them know you are interested in taking the next step. Worst case scenario is no and you continue doing your current job and look for something else or best case is they give you an opportunity.
No worries most welcome, happy to help you out in your job search if you want as I am in a similar situation haha
Kind regards
Sham
Trust me believe in yourself. I am the same don't worry I don't believe much in myself haha.
The only way you will get experience is if you are working in accounts. Speak to your manager or senior and ask them could you get involved in the accounts prep or management accounts. You need to have a chat with them and let them know you are interested in taking the next step. Worst case scenario is no and you continue doing your current job and look for something else or best case is they give you an opportunity.
No worries most welcome, happy to help you out in your job search if you want as I am in a similar situation haha
Kind regards
Sham
Re: Capital Allowance for shed/cabin
If it’s not movable then not sure how CA can be claimed, maybe for the fixtures and fittings inside but not the structure.
Re: Can a Netflix subscription be an allowable expense
I would advise quite strongly against it. For how much a Netflix subscription costs it’s really not worth the risk!
Re: Can a Netflix subscription be an allowable expense
I am inclined to agree with you. A Netflix subscription is primarily for entertainment and I think HMRC would take a very dim view of anyone attempting to claim it as a research item.
Re: Green Light NCAs Question
@mitch1
Hi Mitch,
Perfect thank you very much for confirming. Please see below the explaination as to how I got £14,000.
Right first thing you need to know whether Property Plant and Equipments (PPE - I may use this more short form) appears in the Profit or Loss Statement or Balance Sheet. We know from our studies it appears in the Balance Sheet why becayse Profit and Loss, shows Income and Expenditure whereas Balance Sheet shows, Assets, Liabilites and Equity and Property, Plant and Equipment is recognised as an Asset.
Next in your studies they would have taught you, DEAD CLIC or PEARLS. Both the same - These accounts are generally on the Debit Side - Debtors, Expenses, Assets, Drawings (DEAD). The following are generally on the Credit Side - Creditors, Liability, Income, Capital (CLIC). Its the same with PEARLS. Purchases, Expenses, Assests (Debit side). The following Revenue, Liability, Sales (Credit Side).
Now this will help us answer the question. Always use T ledger (I call it T because its the shape of a T) accounts (see my attachment, it will help you out)
We have a T Ledger for Property Plant and Equipment (PPE). You are told there is a Balance B/D of £38,600 on 1st January 20X1. Based on what I mentioned earlier Asset is a Debit. So on the T Ledger account you will have Balance B/D - 1st Jan 20X1 - £38,600 Debit Side.
Next you have been told that during the year an Asset has been sold, if an Asset is sold, that means the Debit Side will reduce as the asset has been sold. In order to reduce the Asset Account, you would need to post the entry on the opposite side, so Credit Side. They have told you in the Year End 31st Dec 20X1 that the proceeds of the Asset was £2,400. In simple proceeds just means Sale of an Asset. In accounting you need to remember that there always going to be double entry involved meaning two entries. So there cant just be a credit entry, there has to be a debit entry too. As we know the Asset has been sold, we will credit the Property Plant and Equipment account by £2,400. So the debit entry will be Bank Account or Cash Account - £2,400. (The Debit entry isnt relevant on this question its more just to give you an understanding.
So right now the Property Plant and Equipment is not balanced as the Debit entry is £38,600 and the Credit Side is £2,400. There is a different of £36,200 on the Credit Side in order for it to balance. They have told you only 1 asset purchased (which we are trying to work out the cost) and there have been no other assets purchased or disposed (sold).
From your accounting studies they would have taught you that the Balance C/D is always on the side which has a lower value in order to make the account balance. So we have worked out in this question the Credit Side is lower. We worked out there is a difference so far of £36,200 (see above calculation).
But they have told you that the Balance C/D at the Year End 31st Dec 20X1 is £50,200. We so far have a difference of £36,200. So now we need to work out the difference between £50,200 and £36,200 so, £50,200 - £36,200 = £14,000 (Cost of the Asset to make the account balance). If this seems still confusing see below I will explain it in simple
Property Plant and Equipment (PPE) account at the start was £38,600. But then we sold an asset for £2,400. This means that the Property Plant and Equipment (PPE) account currently sits at £38,600 - £2,400 = £36,200. You are told that on 31st Dec 20X1 that the balance C/D is £50,200. Just work out the difference between - £50,200 - £36,200 = £14,000. This is the cost of your new asset.
Sorry for the massive post, I think it was easier to break it all down. I hope this has helped you out, if not I do apologise.
Hi Mitch,
Perfect thank you very much for confirming. Please see below the explaination as to how I got £14,000.
Right first thing you need to know whether Property Plant and Equipments (PPE - I may use this more short form) appears in the Profit or Loss Statement or Balance Sheet. We know from our studies it appears in the Balance Sheet why becayse Profit and Loss, shows Income and Expenditure whereas Balance Sheet shows, Assets, Liabilites and Equity and Property, Plant and Equipment is recognised as an Asset.
Next in your studies they would have taught you, DEAD CLIC or PEARLS. Both the same - These accounts are generally on the Debit Side - Debtors, Expenses, Assets, Drawings (DEAD). The following are generally on the Credit Side - Creditors, Liability, Income, Capital (CLIC). Its the same with PEARLS. Purchases, Expenses, Assests (Debit side). The following Revenue, Liability, Sales (Credit Side).
Now this will help us answer the question. Always use T ledger (I call it T because its the shape of a T) accounts (see my attachment, it will help you out)
We have a T Ledger for Property Plant and Equipment (PPE). You are told there is a Balance B/D of £38,600 on 1st January 20X1. Based on what I mentioned earlier Asset is a Debit. So on the T Ledger account you will have Balance B/D - 1st Jan 20X1 - £38,600 Debit Side.
Next you have been told that during the year an Asset has been sold, if an Asset is sold, that means the Debit Side will reduce as the asset has been sold. In order to reduce the Asset Account, you would need to post the entry on the opposite side, so Credit Side. They have told you in the Year End 31st Dec 20X1 that the proceeds of the Asset was £2,400. In simple proceeds just means Sale of an Asset. In accounting you need to remember that there always going to be double entry involved meaning two entries. So there cant just be a credit entry, there has to be a debit entry too. As we know the Asset has been sold, we will credit the Property Plant and Equipment account by £2,400. So the debit entry will be Bank Account or Cash Account - £2,400. (The Debit entry isnt relevant on this question its more just to give you an understanding.
So right now the Property Plant and Equipment is not balanced as the Debit entry is £38,600 and the Credit Side is £2,400. There is a different of £36,200 on the Credit Side in order for it to balance. They have told you only 1 asset purchased (which we are trying to work out the cost) and there have been no other assets purchased or disposed (sold).
From your accounting studies they would have taught you that the Balance C/D is always on the side which has a lower value in order to make the account balance. So we have worked out in this question the Credit Side is lower. We worked out there is a difference so far of £36,200 (see above calculation).
But they have told you that the Balance C/D at the Year End 31st Dec 20X1 is £50,200. We so far have a difference of £36,200. So now we need to work out the difference between £50,200 and £36,200 so, £50,200 - £36,200 = £14,000 (Cost of the Asset to make the account balance). If this seems still confusing see below I will explain it in simple
Property Plant and Equipment (PPE) account at the start was £38,600. But then we sold an asset for £2,400. This means that the Property Plant and Equipment (PPE) account currently sits at £38,600 - £2,400 = £36,200. You are told that on 31st Dec 20X1 that the balance C/D is £50,200. Just work out the difference between - £50,200 - £36,200 = £14,000. This is the cost of your new asset.
Sorry for the massive post, I think it was easier to break it all down. I hope this has helped you out, if not I do apologise.
Re: Inventory Packaging
Hi,
if the packaging materials are not allocated upon dispatch of orders then you can account the materials as an general expenses.
RAKTHER
Training Coordinator, Osborne Training.
if the packaging materials are not allocated upon dispatch of orders then you can account the materials as an general expenses.
RAKTHER
Training Coordinator, Osborne Training.
RAKTHER
1
Re: Inventory Packaging
What is the volume of orders you’re sending out? Do you keep large values of packing supplies on hand?
Assuming they’re of relatively low value in relation to the rest of the accounts you may well be better off just attributing your boxes and packaging materials as general shipping expenses, rather than valuing it as stock.
Assuming they’re of relatively low value in relation to the rest of the accounts you may well be better off just attributing your boxes and packaging materials as general shipping expenses, rather than valuing it as stock.
Re: What is the best order to study the Level 3 units?
It makes sense, you need first to learn Financial Accounting: Preparation of Financial Statements (FAPS) to be able to understand Tax Processes for Business (TPFB). No offence, but sometimes your comments are more on numbers and not for helping with the required information.
Mila86
1
Re: Transferring personal car to business
Cash basis or accrual accounting?
Would it not be more beneficial to charge the mileage?
Would it not be more beneficial to charge the mileage?