Account yr 14-15 I entered an error into the journal and only noticed it this year when I went to dispose of an item that burned out.
My journal entrys were
4200 sale of asset : cr 800
1200 current account : dr 325
4200 sale of asset : dr 475
I believe that I should have cr 800 to the capital exp account.
Last year is locked and obviously completed with the tax office
How do i correct this please?
Your bank balance and P&l a/c for last year are over stated by 325, you need to reverse that and record disposal this year
Im struggling to get my head round it though.
I cant even work out the journal entries…
And how will I enter that in the self assessment? because thats going to show on the P&L surely?
Reversal journal would be
Dr 3200 Profit and Loss Account ÂŁ325
1200 current account : Cr 325
Disposal of assets
Dr -Acc.Dep
Cr Cost
Dr Bank
Dr or Cr with asset disposal a/c (bal fig)
thank you.
Trying to put right a late tax credits with the worlds most miserable baby screaming in my face for the last 12 weeks
Take kitkat, break it into half , have one and give rest to baby, that will will do the trick hahaha
Can I just check that this will be
capital ex cr 800
bank dr 325
sale of asset dr balance?
You need to credit same asset account which was debited in first place while booking the original cost
Thanks. I managed it.
would you help with another question that is confusing me.
We had a set of speakers that the actual wood disintergrated worth ÂŁ500
I built new cases which are worth about ÂŁ600 as empty boxes and about ÂŁ1000 with the cones.
The same speaker cones (black noisy part) have been taken from the old boxes into the new ones.
I created a project tag for the materials but wasnt sure if they were purchases or repair expenses.
Nor am I sure of the double entry aspect of it.
Id be grateful if you could shed some light on how to make them into an accounting asset and the process for it. Its not seeming obvious to me.
Was original speakers recorded as asset in first place? if yes, Does this new home to speakers enhance assets value at all? if not then its just repairs to asset
the new boxes for the speakers were going to cost us ÂŁ1000 to have built
I built them myself but was offered ÂŁ600 for them.
The old ones were worth about ÂŁ400
Its difficult to price them well as they are bespoke
Hello everyone,
May someone help me with journal please?
Purchase receipt ( went through current bank account) has mixed items, where some of them private expense.
I created a purchase, where put private expense under suspense account, which I created, because given one would not come up at the time of purchase invoice creation for what ever reason ( I am a bit confused about it also).
Then I done journal entry for the private bit to move it into directors loan account.
On directors loan account it is showing money in, as in effect it is a borrowing for the business by a director, and I was expecting suspense account to be reducing - but it is not happening.
Jornal entries:
D - directors loan account
C - created suspense account
Where I made a mistacke?
What I would do is make the purchase invoice for only the valid business part of the expense, and not mention the private part there at all. Since the bank transaction is now for more than the value of the purchase, when you come to tag it you’ll have to use the “pay down multiple invoices” option. Now when you go back to the purchase invoice and click through to the associated “payment” at the top, you’ll see that it has a balance that “remains unallocated” which should be equal to the private portion of the original receipt. Click the “refund balance” button at the top and refund the “overpayment” to the director’s loan account.
The net effect of all this will be for the business portion of the bank transaction to be allocated to the purchase and the private portion to be transferred to the director’s loan. No need for a journal or a new suspense account.
IAN,
Thank you ever so much, it is much simpler, then I was trying to take it over north pole 
Really good explanation 