Hi
I made a manual adjustment for my first VAT return and now i have the amount sat on 2202 on my balance sheet, where should it go?
thanks
chris
Hi
I made a manual adjustment for my first VAT return and now i have the amount sat on 2202 on my balance sheet, where should it go?
thanks
chris
sorry 2204 no 2202 number dyslexic kicking in
I believe you have to journal it yourself as there’s no simple rule for where it goes, it depends on the specific circumstance and the exact reason why you had to make an adjustment. If you can give us some idea what the adjustment was for we may be able to help, but your accountant would be the best person to ask.
Edit: for example I’ve just had to register myself so my first return will need to include an adjustment to reclaim the VAT I paid on stock in hand, and also the VAT I paid on a couple of big capital purchases. I intend to attribute the stock adjustment to General Purchases and the capital adjustment to Plant and Machinery, since those are the accounts that would have been affected had I been VAT registered at the point I made the original purchases.
hi @ian_roberts your example was pretty much exactly, it was my first return and was claiming vat back against purchases so thats where i journalled it
thanks
First VAT Return filed via MTD to HMRC which includes manual adjustments. VAT Return filed on the basis of cash accounting and a flat rate of 10.5%.
Two adjustments made;
The two manual adjustments were showing on the Balance Sheet as Current Liabilities (2204) Manual Adjustments.but both journaled to (4999) Flat Rate VAT Sales Adjustment which seems appropriate for the discount received but not for the pre-registration Sales Invoice payments received as the result is an increase in the turnover figure.
What is the appropriate nominal ledger account to journal pre-registration Sales Invoice payments?
I’ve had a go!
Moved the pre-registration VAT Sales Invoice payments to Proprietor or Partner Drawings (3100) that were in (4999) Flat Rate VAT Sales Adjustment this has reduced the turnover so that the figure recorded for turnover is correct.
Would that be the appropriate N/L account?
Changed N/L to (3101) Retained Profit & Undistributed Reserves rather than (3100) Proprietor or Partner Drawings as that looks better.
Hello @alan_mcbrien
This type of query should always be checked with your accountant for professional advice.