The opening balance for the last end of year included an amount in Debtors Control (1100) for an invoice that was for work done in that year, but issued and paid in the current year, as advised by my accountant. However, when I run the trial balance report for the current year it still shows this amount as a debit in Debtors Control, even though its now been paid, also my current Sales total includes this invoice incorrectly.
Can someone confirm that all I need to do to fix this is to journal a credit to the Debtors Control Account and debit the General Sales (4000) ?
Not entirely sure where the VAT element ends up though…
What exactly was entry at last year end?
It was just the Net amount of the invoice (not including the VAT element). I double checked in the sales tax control account used to calculate the VAT liability at the year end and this didn’t include the VAT element of the invoice.
So net income booked in previous year, you need to reverse the same entry with net amount. Vat element is taken care in this year when proper invoice was booked
Many Thanks - new journal entered and this looks right now !