JOURNAL

HettyVerney
HettyVerney Registered Posts: 7
in General accounting discussion
I have a new client who has realised the sales figure he has used for the past year is incorrect due to working it out from his bank statements, it was actually a figure less their transaction fees. We’ve worked out the difference but need to know what journals we need. We have increased sales, transaction fees, VAT and he’s on flat rate 8.5%. My brain is addled, can anyone help please?

Comments

  • MarieNoelle
    MarieNoelle Moderator, MAAT, AAT Licensed Accountant Posts: 1,369
    I would enter a journal as follows - assuming £600 of transactions fees
    DR: Transactions fees £600
    CR: VAT £100
    CR: Net Sales £500

    And then depending on how you account for the flat rate income I would do
    DR: VAT £49
    CR: other income (FRS income) £49

    FRS income being £500 *20% less £600 x 8.5%

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