Previous Year Adjustments

If you already done the year end routine and you want to post some journals for the previous year adjustments try to use this method.

As a general rule you will put through Nominal > Journals the adjustments on the Balance Sheet codes & date them the last day of the previous accounting year.

For Example if you have been given Journal entries by your accountant after finishing the year financial accounts, Corp Tax : Credit the Corp Tax Code in the Balance Sheet & DR the Retained Profit A/c.

Make sure Don’t make any adjustments directly to the Sales or Purchase Ledger Control A/cs. If you have, for example, a debtor to write off – set up an Account near or next to the Debtors Control A/c called Credit Note Provision – or similar- Cr C/Note Provision DR Retained Profit ; & then in new financial year when you raise a C/N to remove the debtor you NL Code this to the A/c you have just set up – so it does not come off current years Turnover.

As you have only any other journals – Next year end get back-up to Accountant as soon as possible & get Accounts finalised as soon as possible & don’t year end until you have done this – you can continue inputting data post end of year – you simply get irritating message about it being a different Accounting year.

Posted in: year end