My Balance Sheet showed an amount of £23,232.90 VAT Liability (2202) under Current Assets and an amount of £25,758.51 Sales Tax Control Account (2200) under Current Liabilities.
I think the reason for the VAT Liability under Current Assets was because for this period I hadn’t been using QF to do the VAT returns and so I’ve journaled £23,232.90 from VAT Liability to Sales Tax Control Account and also adjusted for the Flat Rate VAT.
This has removed the £23,232.90 VAT Liability from Current Assets and reduced the Sales Tax Control Account amount under Current Liabilities to £2,290.93.
The £2,290.93 figure is the difference between the total of the VAT on the Sales invoices in the period [£25,305.33] less the above journaled £23,232.90 and FRS adjustment [£23,467.58].
The correct amount of VAT owed at the period end date however is £1,549.34 not £2,290.93.
My question is how can I journal out the difference so that the correct figure is showing on the Balance Sheet?