Is it an accruel?

sassyduell

I am doing my local PTA's accounts. The financial year runs from sept - Aug. I finished the accounts at the end of August together with end of year accounts and sent them off for audit. Yesterday I received a cheque from one of the committee which was in responce to a claim for gift aid from HMRC made for tax year 2005/06. I was not aware that it was pending so no mention of it has been made in previous years accounts. It will be banked in 2009/2010 accounts. How will i account for it?
Thank you in anticipation

Vonni

When signing off PTA type of accounts I am only normally provided with accounts in the form of Income & Expenditure, usually as there are no assets other than bank or cash balances a Balance Sheet is not applicable. As you were not aware of this when finalising the accounts there shouldn't be a problem, although it may be worth mentioning it to the accountant who is signing off the accounts if the amount is 'significant'. I am assuming that there was / is no provision for this on the balance sheet for 2005/06 onwards if there is a Balance Sheet? If not then the income should be shown as a receipt in the new year. However, you should bear this scenario in mind for the future and make a note for the accountant.

sassyduell

Thanks Vonni. You are correct re how the accounts are set up. There was no provision for this in previous years as it has only just been claimed. This quite often happens with different types of receipts at the end of the year and because i only do the treasurers role i dont always know what is due in (I always remind everyone before i finish the year) so i often stuck in a dilemma about where these receipts should go.

Jan

I used to do our church accounts and the first thing the accountant who independently examinedthem (as opposed to audit) was point out that as they were not on an accruals basis that Receipt and Payment should be used, not I & E. No balance sheet, but a statement of assets and liabilities was required