Pub Waste

marine
marine Registered Posts: 31 Regular contributor ⭐
in General accounting discussion
Hi Guys

This is a new one to me just taken over books for a pub, there previous bookkeeper has been putting through a journal to cover beer waste etc.

They have been told by there accountants to put through the following journal every month:

Dr - Sales £ 645.00
Dr - VAT Account £ 96.75
Cr - Creditors £ 741.75 ??????

I have never come across this before can anyone help?? Am i being stupid or is this correct surely it shouldn't be on the balance sheet even if the profit & loss part of the journal is correct?

Any help would be great

Thanks

Tim

Comments

  • slackda
    slackda Registered Posts: 460 Dedicated contributor 🦉
    Not sure if you can claim VAT relief on beer wastage??

    I Only thing i can think of is the beer stock isn't theirs and is the brewery's untill sold.


    DR COS (wastage account)
    CR BEER STOCK .

    Assuming that a purchase of beer from the brewery creates:

    DR BEER STOCK
    CR CREDITORS

    Seems like a way of artificiallly reducing the the turnover of the business though...
  • Hasan.Ahmet
    Hasan.Ahmet Registered Posts: 87 Regular contributor ⭐
    Ask them what the narration is for the entry.
    When a journal entry is prepared it should have a narration.
  • lorraine
    lorraine Registered Posts: 404 Dedicated contributor 🦉
    I have looked at the website and there are spelling mistakes:
    New Updated Site ! www.manukauservices.co.uk , just thought I would point that out to you.
  • slackda
    slackda Registered Posts: 460 Dedicated contributor 🦉
    lol, ty lorraine, good with numbers not with words :)
  • Guest
    Guest Registered Posts: 73 Regular contributor ⭐
    slackda wrote: »
    lol, ty lorraine, good with numbers not with words :)
    Not too good with numbers either, Audit exemptions start with point 1 followed by point 9???
  • slackda
    slackda Registered Posts: 460 Dedicated contributor 🦉
    Guest wrote: »
    Not too good with numbers either, Audit exemptions start with point 1 followed by point 9???

    As it says on the website its an Extract from Companies house website :P

    but thats not important, the thread is about pub waste and the treatment, anyone got anything useful to bring to the table?
  • Rinske
    Rinske Registered Posts: 2,453 Beyond epic contributor 🧙‍♂️
    Maybe pubwaste is for the times the accountant was getting wasted in the pub, instead of invoicing the pub for work done?
  • A-Vic
    A-Vic Registered Posts: 6,970 Beyond epic contributor 🧙‍♂️
    Am i thinking to literly or is pub waste like any other stock waste and therefore have to be treated as such? Just because law states now you are not allowed to re-sell driptray wastes therefore reducing GP ???

    Otherwise :-

    http://www.livescience.com/technology/090821-ideas-beer-power.html

    or even:-

    http://www.thefishsite.com/fishnews/6059/beer-waste-becomes-fish-food

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