Journal Question

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:23AM in AAT student discussion
2 questions, first one I just need confirmation on:<BR><BR>If I have to right off a bad debt the journal would be as follows: DR Bad Debts CR SLCA. Is that the right way?<BR><BR>Second one, the owner of the company paid his personal income tax and posted the amount £3400 to wages and salaries is this corrected as follows: DR wages and salaries CR Drawings. Iâ??m not sure if this should be the drawings account or the PAYE control account, not sure 100% if I have it the right way round either.<BR><BR>Many thanks<BR><BR>Nick

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Journal Question

    Hi There<BR><BR>Yes the bad debt question is correct (subject to the entity not being registered for VAT).<BR><BR>the next question re the owners self assessment would not be to debit wages and salaries, but instead the entries to correct would be credit wages/salaries as the original entry would have been credit cash, debit wages and salaries. You would then debit the owner's drawings account as self-assessment payment is not PAYE it will be his/her own private tax. However, if the question states that it is PAYE then it would, of course, be a debit to the PAYE control account.<BR><BR>Hope this helps.<BR><BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Journal Question

    Thats fantastic,<BR><BR>Many thanks peugeot

Categories

Privacy Policy