Hi ! So there is a strange problem here.
I have an account in Euro currency.
Trial balance showing a loss to balance of 983 euros for this year.
But conversion in Quickfile says i lost 1457 pounds (normally it should be less than 800) !
That is not normal and i dont know how this conversion done but the problem is that now, on GBP trial balance appears that i have a negative closing balance ! Because 1457 pounds are not real and the available balance is less than 1457 so is negative.
And HMRC not allow me to write a negative amount for cash at bank.
So is this problem of Quickfile ? Or what i do now ?
Hi @Panos
Have you entered any currency loss/gains on your account to reflect the actual value of the EURs currently on your account?
Everything on QuickFile is saved as the GBP equivalent, so bank accounts will need to be re-valuated at times.
There is a gain/loss value on Overheads column “code 7902 Currency Charges” and this will go to administrator expenses .
This value can not be edited because is related to every day exchange rate Euro-GBP (not to today price).
So the GBP closing balance can not change.Also on the previous accounts the accountant registered the balance of Quickfile as it appears on file (did not edit it).
Also from previous accounts, the difference (loss) on GBP shown as bigger than this on Euro but we didnt change (i think can not change this).
However the closing balance of previous year was still positive for GBP and we submitted to HMRC.
But now the balance is negative…HMRC not accepting negative balance on cash field.And will be more negative the next year.
Any ideas ?
I thought better your answer Mathew for “re-valuated account” and i think i found the solution.Let me explain.
The gain/loss amount normally should not affect the balance.Affecting only the invoices amounts.
So is not good to appear the amount in trial balance file as affecting the closing balance when amount comes from conversion.
Let me give an example.
If i sell one only invoice in the year, and i take 1 million euros as payment, and then the euro rate is raise, then yes i have a profit in my bank cash because i have these euros to my account and converted to GBP makes a profit.
But if within 1 year i sell or pay 2000 invoices , and my turnover is 10 millions ,the gain/loss is related to turnover and not to closing balance which could be only 1000 euros.
This does not mean that i have this gain (or loss) for sure to my cash bank.
Example.
I take 1000 euro as payment and rate is increase by 1% so profit registered on my account.
Then i give the 1000 euro to take items but then the euro then loses again its 1% so this is profit too for me because i paid less GBP by 1% than i had before !
Again i sell these items and i take again 1000 euro but then euro raising again ! So i take another 1% so totally i have 3% gain while i have only 1000 euro and the rate GBP-Euro finally is same !
So the only solution to this , is to ignore the closing balance of f trial balance file and just to convert the real closing balance of Euro , in today price of GBP and to submit to HMRC.
This gain/loss is related to turnover only and should not affect the real balance.
I wish i am correct 
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