Can someone explain?

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Zeeshan_Ajaib
Zeeshan_Ajaib Registered Posts: 6
in Indirect Tax
What would the T account for this look like?

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  • ClareJo
    ClareJo Registered Posts: 11
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    It would look like the excravinar of the t symbol
  • Cheesypeesy
    Cheesypeesy Registered Posts: 101
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    Okay, so in the last quarter £31,650 was due to HMRC, which means it's on the credit side (a liability).The payment of the liability should have been on the debit side, i.e. reducing the liability.

    However, the payment was posted on the wrong side (the credit side), so last quarter's balance was £63,300. Adding the amount due to HMRC in this quarter, we get a credit balance of £100,125.

    So in essence all the postings mentioned will be on the credit side.
    Matthew Dearlove MAAT
    Currently on CIMA Management Level. Passed P2, F2 and E2. Preparing for November 19 MCS.

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