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• # 75459
• Thu 20 Oct 2011 01:14 PM

Hi,

Just wondering if anyone can shed some light on the following for me. When I have produced a trial balance (using Sage) we match this to an excel spreadsheet to get the figures to agree. The trail balance on sage differs to the excel spreadsheet by the balance on what is our 'loan account'.
I have checked everything else but it seems the loan account which was used 'to put money aside' if you like for 2 x company car payments did not have enough money allocated to cover the payments that were due to come out. These payments ended in September and were allocated on sage by a reoccuring entry. It seems that whilst there was 'money' in the pot the sage account showed as a credit balance but now it is 'overdrawn' it is on the debit side and this amount that is 'overdrawn' is the figure that differs.
There is no one I can ask within the company as I am covering a maternity contract. I did ask the previous lady but I am not quite sure what she meant in her reply which was: 'take out of CR and enter as a pos on DR side'.  

I have a second difference also, We received a cheque refund from HMRC for an overpayment in a previous accounting year. I coded this to the 'corporation tax' account. The same thing has happened as above in which the trial balance not only differs by the above amount but it now also differs by the amount on the corporation tax account. Previously the balance on the corporation tax was £1349 on the debit side. Once I have allocated the cheque the account is £1612.37 on the credit side.

Even though I have realised the differences I am not sure what I need to do with them.
Any clarification will be greatly appreciated.
Many thanks

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• # 75462
• Thu 20 Oct 2011 02:49 PM

Hi,

With regards to the 'car loan account', was interest incorporated in this figure and in the payments? This could be what the difference relates to.... if so then journals would need to be done to account for the interest paid.

Also, was the HMRC refund actually for corporation tax? (seems a silly question, but just want to get a full picture)

Regards

Kerry

• www.berrybookkeeping.co.uk
  
  My responses are based on my opinions, not necessarily facts.
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• # 75464
• Thu 20 Oct 2011 03:21 PM

Hi Kerry,

Thankyou for your reply. Unfortunately I only work Mon to Wed so am not back in the office until Monday to double check.
I did look originally at the account to see if I could see what had been put in there originally but I can't remember if I saw anything relating to interest charges. There was some amounts for admin set up fees and purchase fees for the end of the contract. If it is interest then when you say to do a journal which account would it relate to alongside the loan account. (Sorry if that sounds a bit dumb!)

Also, relating to the refund from HMRC - I am not actually sure. There was no real description with the letter that came with it apart from a refund for the accounting year that was quoted.
Probably best to contact them to see what it was for to be sure.

Thanks again.
Diane

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• # 75465
• Thu 20 Oct 2011 03:31 PM

Hi Diane,

You would need to CR the loan account and debit, for example, HP interest - I use nominal 7904 in sage, as an overhead.

However, I deal with this on a monthly basis, allocating as a monthly expense to the P&L so if they haven't, then this would probable need adjusted accordingly for previous years (if you know what I mean). Perhaps someone with more knowledge could advise on how to deal with this, even the accountant of the company should be able to advise what to do,

And yes, I would check to see what the refund is for

Let me know what you find out

Best regards

Kerry

• www.berrybookkeeping.co.uk
  
  My responses are based on my opinions, not necessarily facts.
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• # 75467
• Thu 20 Oct 2011 03:36 PM

Thanks Kerry,

Sounds good.

Regards
Diane

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• # 75612
• Mon 24 Oct 2011 07:33 PM

Hi,

Just an update from my previous post. The refund cheque from HMRC was for corporation tax and was for the year 2008 - 2009.

I have double checked the loan account details and the correct information was input at the start i.e. admin charges, interest, purchase fees etc. As I have checked through it I noticed the carried forward and brought forward figures have been adjusted each year and this is where the shortfall comes from. Anyone got any ideas why these would have been changed - if these were not altered the balance should now be zero instead of a minus figure.

Thanks
Diane 

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• # 75621
• Tue 25 Oct 2011 07:36 AM

Hi Diane,

In my opinion, if the loan interest was posted to the loan accounts at first, I would imagine the adjustments were to take the interest out of the loan account, and put to an expense accounts. But that it just my thoughts, and without actually looking through the accounts myself, I can't really give a definite cause!

Perhaps your best bet would be to check with the person who dealt with the end of year journals and ask them why they have done this? Or find a copy of the journals to see if anything jumps out at you.

Sorry I can't really be much more help.

Good luck.....

Best regards,

Kerry

• www.berrybookkeeping.co.uk
  
  My responses are based on my opinions, not necessarily facts.
• 
  Quote
  

• # 83261
• Sun 17 Jun 2012 09:34 PM

DBLsaid:

“Hi,

Just wondering if anyone can shed some light on the following for me. When I have produced a trial balance (using Sage) we match this to an excel spreadsheet to get the figures to agree. The trail balance on sage differs to the excel spreadsheet by the balance on what is our 'loan account'.
I have checked everything else but it seems the loan account which was used 'to put money aside' if you like for 2 x company car payments did not have enough money allocated to cover the payments that were due to come out. These payments ended in September and were allocated on sage by a reoccuring entry. It seems that whilst there was 'money' in the pot the sage account showed as a credit balance but now it is 'overdrawn' it is on the debit side and this amount that is 'overdrawn' is the figure that differs.
There is no one I can ask within the company as I am covering a maternity contract. I did ask the previous lady but I am not quite sure what she meant in her reply which was: 'take out of CR and enter as a pos on DR side'.  

I have a second difference also, We received a cheque refund from HMRC for an overpayment in a previous accounting year. I coded this to the 'corporation tax' account. The same thing has happened as above in which the trial balance not only differs by the above amount but it now also differs by the amount on the corporation tax account. Previously the balance on the corporation tax was £1349 on the debit side. Once I have allocated the cheque the account is £1612.37 on the credit side.

Even though I have realised the differences I am not sure what I need to do with them.
Any clarification will be greatly appreciated.
Many thanks”

• Hello all,
  
  i just noticed we have a forum, just poking around the members area.  My name is Paula welsh and I have been a member since 2005, starting with Associate member and now a full member

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