Opening balances from y/e 2018 showing in P&L for y/e 2019

[Pelican10]

Hi

I’ve been using QuickFile since the start of the 2018-19 tax year. At the start I added my bank opening balances, but not the opening balances from purchases, PAYE etc which I didn’t have from my accountant at that time.

I have added them now, journalled on 31/3/18 (credit 2100, debit 5000, 2210 etc as detailed in Brought forward balances on the sales and purchase ledgers), but they are still showing up in my nominal accounts for the year 2018-19. If I journal them to 1/4/2018 they show as expenses in y/e 2019.

How do I journal these opening balances so that the figures are taken off the 2018/19 expenses? Have I got the debit and credit the wrong way round?

And is 2210 the correct account to use for PAYE tax? Shouldn’t it be near the NI and salary payments?

Thanks

[QFMathew]

Hi @Pelican10

When you enter your opening balances, it should be before the date they take effect. So in this case, if you’re starting on 1st April, you would enter them as 31st March.

This would ideally be a trial balance or balance sheet from your accountant.

Regarding 2210 PAYE, this is a grouped account for NI etc. We have a sample journal in the following link which shows how this is split out to make up the one figure: Recording payroll.

Hope that helps, but I would certainly check with your accountant to make sure the entries are correct.