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Year-End adjustments


#1

Hi Guys,

I’m attempting to make the necessary adjustments to close off our accounting year to 31 December 2018. A bit of help needed: during the latter months of 2018 we received 24 separate payments as advance subscriptions for 2019 towards our annual “100 Club” Fundraiser. These 24 items total £962.00. All were recorded against sales invoices and tagged as paid at the date (Sept-Dec 2018) they were received and paid in to our current account as we went along (deposits mixed in with other items).

How could I now best make an adjustment so that the £962.00 is reflected in the accounts as a receipt for 2019 calendar year rather than 2018? It doesn’t feel right to go through the sales individually and alter the dates to, say 01/01/19. I’m sure there must be an elegant and straightforward accounting solution?

Many thanks for any help.

Jonathan


#2

Journal the total across to a suitable balance sheet code (such as prepayments) on the last day of the 2018 accounting year, and set it to auto reverse on the first day of the 2019 year.


#3

Okay, thanks for that, Ian - as a non-accountant, I am only just coming to grips with journaling… used it to enter End of Year stock valuation, for example.