Income Statement / Sage Line 50 query

PhillipPPhillipP Settling In NicelyPosts: 20Registered
I have recently been asked to produce the Profit and Loss, Balance Sheet and Final Trial Balance for the auditors for the previous financial year.

When I printed out the reports today on Sage I noticed that there were a number of "technical" discrepancies. It appears that the Nominal Ledger activity report for the year and the Profit and Loss report have differing balances.

Having just finished comparing the two reports it appears that there are several Nominal Ledger accounts that appear on the Trial Balance and Nominal Ledger activity report but don't appear on the Profit and Loss report for the same period. Two of the 'missing' expenses are from new Nominal Ledger accounts that were set up for Pension Withdrawal and Capital Expenditure and the Irrecoverable Debts is the other item that is also missing from the income statement.

Before I next go into the office and meet up with the Auditor I would be very grateful if there is anyone out there with knowledge of Sage who would be able to let me know why these three items of expense might be missing from the Income Statement. Because the Income Statement is incorrect this means that the wrong P&L has been included on the Balance Sheet and this will also need to be addressed.

Many thanks
Phillip

Comments

  • coojeecoojee Experienced Mentor Posts: 794Registered
    PhillipP wrote: »
    I have recently been asked to produce the Profit and Loss, Balance Sheet and Final Trial Balance for the auditors for the previous financial year.

    When I printed out the reports today on Sage I noticed that there were a number of "technical" discrepancies. It appears that the Nominal Ledger activity report for the year and the Profit and Loss report have differing balances.

    Having just finished comparing the two reports it appears that there are several Nominal Ledger accounts that appear on the Trial Balance and Nominal Ledger activity report but don't appear on the Profit and Loss report for the same period. Two of the 'missing' expenses are from new Nominal Ledger accounts that were set up for Pension Withdrawal and Capital Expenditure and the Irrecoverable Debts is the other item that is also missing from the income statement.

    Before I next go into the office and meet up with the Auditor I would be very grateful if there is anyone out there with knowledge of Sage who would be able to let me know why these three items of expense might be missing from the Income Statement. Because the Income Statement is incorrect this means that the wrong P&L has been included on the Balance Sheet and this will also need to be addressed.

    Many thanks
    Phillip

    You need to check the Chart of Accounts to see what nominal ledger accounts are included within each figure in the P and L and Balance Sheet. You'll find that the new accounts aren't being picked up anywhere so you'll need to add them into the chart of accounts.
  • PhillipPPhillipP Settling In Nicely Posts: 20Registered
    Thank you very much for that information.

    Had never used Chart of Accounts before and it took around 20 minutes to figure out how to add the missing nominal codes to the list. The Profit & Loss report is now correct and matches the Nominal Ledger Activity report and that is an enormous relief.

    Will now have to check the Chart of Accounts for missing ledger items that affect the Balance Sheet.

    You really learn a great deal from these forums.

    Once again, many thanks.
  • coojeecoojee Experienced Mentor Posts: 794Registered
    PhillipP wrote: »
    Thank you very much for that information.

    Had never used Chart of Accounts before and it took around 20 minutes to figure out how to add the missing nominal codes to the list. The Profit & Loss report is now correct and matches the Nominal Ledger Activity report and that is an enormous relief.

    Will now have to check the Chart of Accounts for missing ledger items that affect the Balance Sheet.

    You really learn a great deal from these forums.

    Once again, many thanks.

    It's been a while since I used it but I think there's a check function within chart of accounts that will tell you which accounts aren't included anywhere. Sorry I've only just remembered this, would have been helpful to you earlier...
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