Hi @QFMathew I am new to QuickFile and have entered the trial balance figures supplied by my previous bookkeeper which balances but I do not see the fixed assets (tangible and intangible figures). I am wondering how I can manually enter these cost figures in terms of the corresponding journal entry. For example, I can enter debits for the original cost amount in a journal for Plant & Machinery, Motor Vehicle, Intangible Assets but what would be the corresponding credit entry? These items are in the previous balance sheets and are not new items.
By definition your previous balance sheet should balance, the matching credit side is probably some combination of capital introduced, share capital, retained profit from previous years, etc.
Where are you getting Fixed Assets values from if not from the trial balance? Or do you mean you can’t see where in Quickfile to code them?
Hi @ian_roberts, The balance sheet is at 31/12/2019 and the trial balance, from the previous bookkeeper, is 31/08/2020 which balances and I have entered (the trial balance) in Quickfile. Unless I am missing something then there will be difference between the figures on the two as e.g. bank, creditors will reflect different values with time. However, the fixed assets (cost) will not change being the original cost with value adjusting via depreciation which would be the same figure at 31/12/2019 and 31/08/2020, until the year end of 31/12/2020. However, fixed assets are not in the trial balance which is confusing things. I guess if the accounting equation is Assets = Liabilities + Equity then the only things I can match fixed assets to would be Equity (which must be out too).
Hi @cbstephensaca, they are not on the trial balance but if I and can see the codes for them, which would be a debit, but then what would I credit? Equity?
I am trying to assume that my previous bookkeeper did the trial balance correctly but just left off the assets (and depreciation) which I am trying to fix rather than redo everything from scratch…
If the balance sheet is 31/12/2019 and the TB is 31/08/2020 then there would be a whole host of differences between the two. I think you need to ask your bookkeeper about the fixed assets. If he/she is providing a closing TB for you, they ought to also provide enough working papers to explain their figures, and preferably include a fixed asset register. Are you a sole trader/partnership/limited company?
In which case it’s really important to get the figures correct. I’d be surprised if your bookkeeper “left off” the assets and depreciation. The only scenario I could see would be if s/he was only carrying net book value (rather than cost and depreciation) and they were fully written down. Even so they should be able to provide the separate cost and depreciation as this is a requirement for ltd company accounts. It sounds to me as though you need an accountant to look at this - and not just a bookkeeper.
Thanks @cbstephensaca for your support. Well the bookkeeper is not being cooperative, I think there is an competence issue. I also requested the P11s but she didn’t know what they are. I have checked and updated that too. Her response when I asked to resend the trial balance with the fixed assets etc correctly included was ‘Of course they were not included. Your account calculate the new figures and included them at the year end to file your accounts’. Anyway, I have carefully checked and I see that Capital and Reserves (specifically, Retained Earnings is lower than it should by the amount of the fixed assets). I will create journal entries to include the fixed assets and also for deprecation. Jon Griffith
If they are genuinely only a bookkeeper, id suggest p11s is out of their remit, and I’d expect the accountant to handle those.
It looks like your accountant did do something but the bookeeper didn’t add the adjustments. Whether book keeper was advised to adjust the balance sheet I don’t know. It could just be a case of crossed wires.
It does sound as though the bookkeeper either didn’t know or wasn’t told that she would need to put through year-end adjustments, in order to make sure the books are up-to-date. Your accountant should be able to give you those though.
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