For AAT student members
Advanced Diploma in Accounting
Can someone explain?
What would the T account for this look like?
It would look like the excravinar of the t symbol
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.