which tax year?

sassyduell

Can anyone tell me, If work has been done in 2007/2008 tax year but money not banked until a few days into the new tax year, what tax year would i record it in the persons accounts?
Also with any payments made a few days into next tax year but services were given in the old tax year?

Bluewednesday

You prepare accounts under the accruals concept so you would record the sale and the corresponding debit is debtors or work in progress.

Those payments would then be reversed out the following year.