Income Statement / Sage Line 50 query
PhillipP
Registered Posts: 20 Dedicated contributor 🦉
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
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
0
Comments
-
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.0 -
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.0 -
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...0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 18.9K For AAT students
- 266 NEW! Qualifications 2022
- 147 General Qualifications 2022 discussion
- 9 AAT Level 2 Certificate in Accounting
- 42 AAT Level 3 Diploma in Accounting
- 65 AAT Level 4 Diploma in Professional Accounting
- 8.9K For accounting professionals
- 23 coronavirus (Covid-19)
- 274 VAT
- 92 Software
- 274 Tax
- 138 Bookkeeping
- 7.3K General accounting discussion
- 194 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 352 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 590 Job postings
- 17 Who can benefit from AAT?
- 36 Where can AAT take me?
- 44 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 65 AAT membership