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• # 77328
• Wed 30 Nov 2011 08:42 AM

Hi
I wonder if someone could help me get my head around this one.
I have a client whose accountant doesn't use Sage and since I ran year end ( July) and she has done the reporting for year end and she hasn't asked me to do any further journals and I am wondering if I need to do one for this.

The client has received a refund for Corporation Tax. Should I just bring it in to the bank through say 2150 (Corporation Tax Liability) - or (as I feel) there should be something else going on as well? I wasn't sure it was right to just leave a balance in 2150.

Thanks

Shirley

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• # 77329
• Wed 30 Nov 2011 08:47 AM

Hi Shirley,

That's precisely what I would have done once the refund has been received, however the accountant should have given you an adjustment to account for the fact that something was owed to the company, I think the adjustment should have been:

Dr B/S Corporation Tax
Cr P/L Corporation Tax

This would show that there was corporation tax owed to the company.

I think just to be sure, you should ask the accountant but this is what I have always seen.

Hope that helps!

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• # 77330
• Wed 30 Nov 2011 08:51 AM

Thanks.... I thought I needed to contact the accountant but didn't want to look an idiot!!!
It just goes to show, trust your first instinct :-)

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