I have entered balances that my accountant gave me (trial balance) from year end accounts and I am not sure how it works with some entries…
On trial balance I have opening entries of from the previous period:
VAT Control £7000 (CR)
Sales Ledger £14400 (DR)
These amounts were paid a few days into my new financial year but I am unsure to me next entries.
Debit Bank
Credit Sales Ledger
But the amount paid into bank was including VAT which is higher than the £14400?
Accounts were previously on Excel prior to the software