Wage journals - The Book-keepers Forum (UK)

beckyboo · Veteran Member

Wage journals

Spamkebab · Expert

Funny you posted this question as i was reading an older post

http://www.book-keepers.org.uk/t40916048/sage-50-accounts-wages-journal-entries/

This might clear things up for you

Neil

beckyboo · Veteran Member

Hi Neil,

Yeah i just read that one but still cannot work out why the end total is wrong? Not sure what im doing wrong? : )

ADAS · Guru

Hi Becky

You've forgotten that you need a credit for £364.73 for Employers Ni.

Employers NI

Dr P&L - reflecting the fact it's a business expense
Cr Balance Sheet - reflecting the fact it creates a liability from the employer to pay HMRC

hth

-- Edited by ADAS on Tuesday 10th of January 2012 02:13:10 PM

beckyboo · Veteran Member

Hi Tony,

Thank you very much for that.

I have re-done it adding the credit for employers NI but the figure is even more out now. Do you think my figures are wrong?

Debit credit

7000 gross wages £3233.00 Debit
7006 Employers NI £364.73 debit
2211 National Insurance £680.33 (TOTAL employer and employee ni) credit
2210 PAYE £521.80 credit
2220 Net wages £2395.60 credit
7006 Employers NI £364.73- credit

TOTALS debit side- £3597.73 credit side- £3962.46

Does anyone know what i am doing wrong?

Thanks

-- Edited by beckyboo on Tuesday 10th of January 2012 04:04:59 PM

kjmcculloch83 · Expert

Hi,

Your figures are right, but for some reason you are trying to debit and credit employer NI, its just a DR.

So:

DR 7000 Gross Wages £3233.00
DR 7006 Employer NI £364.73
TOTAL DEBITS - £3597.73

CR 2211 National Insurance £680.33
CR 2210 PAYE £521.80
CR 2220 Net Wages £2395.60
TOTAL CREDITS - £3597.73

Hope this helps.

Kris

-- Edited by kjmcculloch83 on Tuesday 10th of January 2012 04:04:44 PM

beckyboo · Veteran Member

Thank you Kris.
That is most helpful. I was just under the impression that the end figure should be the same as the gross wage £3233.00 at the top that's why i couldn't work it out. Thinking about it though it would never have added up like that.

I had those figures to start with but had a reply from Tony saying: "You've forgotten that you need a credit for £364.73 for Employers Ni.

Employers NI

Dr P&L - reflecting the fact it's a business expense
Cr Balance Sheet - reflecting the fact it creates a liability from the employer to pay HMRC"

So after that i just wasn't sure. Thank you Kris for sorting this for me i thought i was going mad ha-ha :)

kjmcculloch83 · Expert

I think Tony has just misread the question, we all do it at some point.

Glad you're sorted now.

Kris

beckyboo · Veteran Member

Yes im sure you are right. I was thankful that he replied anyway.

This forum is so helpful!

Thank you Kris and to everyone that has helped x

Spamkebab · Expert

In Sage i normally keep employer/employee NI seperate so i have an even number of journal entries, i'm only learning the software but it seems to make it simpler to understand. I would debit the gross wages and then match my other accounts with the correct credit entries, then finally i would debit the employers NI and credit the NI control account. Hope someone understands what i'm on about.

I was going to post that i thought Becky had gotten it right first time but i still lack confidence in answering questions on here so for the time being as long as i'm quiet, i hope you all don't mind me taking a backseat and watching the show.

Cheers

Neil.

kjmcculloch83 · Expert

We would, but you're funny.

Kris

Spamkebab · Expert

Funny how? Funny haha or funny.............funny how?

lol

ADAS · Guru

Hi Becky

Kris is quite right I didn't read the last part of the question properly, saw your figures and "assumed" it was the totals of your debits and credits.

Thanks for putting it right Kris and sorry for confusing you more Becky.

Sammy76 · Senior Member

Spamkebab wrote:
Funny how? Funny haha or funny.............funny how?

lol

Funny like a clown wink

beckyboo · Veteran Member

Thank you everyone for your help. I have managed to get it sorted now thanks to you all :)

Thanks for your comments too Neil and i think you are right about keeping them separate, i remember my college teaching doing it but at that point i didn't realise why. :)

K3 Accounting · Veteran Member

What do you mean, funny, like the way I talk?

Joe Pesci, Goodfellas

Awesome!

Spamkebab · Expert

Hey Ken, Still one of my favourite films.

ella · Member

Hi Evryone

My name is Ella

Please ,please can anyone help me to journal my first wages to sage account.I havent done it before and Im a bit confused.

I got a details below.:

total payments :15411.94 , tax deducted:1809.17, employee ni:1050.73, net pay:11534.29, employer nic:1231.86

student loan 204.00

thank you very much

:)

Stardoe · Guru

Hi Ella,

Welcome to the forum. It might have been better if you'd have started a new thread for your enquiry, but never mind.

You need to post your wages journals as follows:-

DR Gross wages xx

DR Employer's NI xx

CR Net wages xx

CR PAYE & NI Ctrl xx (includes Employer's ni)

CR Student loan xx

Your figures don't quite add up as Gross wages less employee's ni less tax should equal net wages, but they don't. Possibly you need to check your figures again?

ella · Member

Dear Paulina

Thank you so much for your respond,its helped a lot and I ask the payroll to send the figures again for me and she forgot to mention what else didnt including the net wages.

Thank you again:)

Ella

Stardoe · Guru

Hi Ella,

No problem

ella · Member

Dear Pauline

How are you? Please can I have more questions for you about bank rec, vat journal?
If so please can you get back to me with your respond.
I havn`t do any bank rec and vat return before. I`m confused with bank reconciliation as I have a plenty of transactions what I cant reconcile in sage,and I`m not sure what to do with them until I dont have the doc for them and after also. I`m in hurry as the vat return period ended on 31 December and due to submit by 07 February 2013. Do you think is it not too risk to submit on the last day on 07 Feb?

Please can you explan me the vat journal too.

I hope I`m not bothering you too much,

Thanks a lot,
Ella

Stardoe · Guru

Hi Ella,

The idea with the bank reconciliation is that you match the transactions on your bank statement to the transactions in the bank reconciliation window in Sage. When they are all matched the difference in the "difference" box at the bottom of the window should be zero. If you don't have the bank statements you can't do a bank reconciliation. Or you could print them off if the client does online banking.

With regard to the VAT return, you can submit it on 7th February if you are submitting online...that is the final date that it can be submitted, and your payment must be made on the same day. To be safe I usually make sure I submit returns before the deadline (usually the last day of the month) and then I know I've got at least 7 days to make the payment in.

The VAT journal is automated in Sage if you run the wizard. The idea is to transfer the VAT amounts from the Sales tax control account and the Purchase tax control account into the VAT Liability account. You need to go to Modules - Wizards - VAT transfer wizard and follow the steps through. You need to have fully reconciled and printed off or saved copies of your VAT return before you do this.

Hope this helps.

ella · Member

Hi Pauline,

Thank you very much for that, very clear now!
Only I`m still confused with, when I matching the bank statements with the sage bank reconciliation and missing documents what I don`t know what was for on the statements how can I reconcile the bank? What do I need to do in this case to balance the account? Is it going to affect the vat return?

Thank you, sorry for I have more questions.:)

I very much appreciate it.

Ella

Shamus · Forum Moderator & Expert

please note that the question was also asked in this thread :

http://www.book-keepers.org.uk/t31740206/sage-trouble-with-bank-rec/

the two threads are too old to merge.

The fact that there are two seperate answers to the question mean that both threads need to remain.

For future reference to posters please do not post the same question more than once and espechially do not use old threads for such.

Shaun.

ella · Member

Hi Shaun

Could you just please care about your business?
I dot think is there a problem if I`m asking more clever and experienced people opinions,do I?

This is just great!

Shamus · Forum Moderator & Expert

ella wrote:
Hi Shaun

Could you just please care about your business?
I dot think is there a problem if I`m asking more clever and experienced people opinions,do I?

This is just great!

All posts on the site are my business (note the forum moderator tag!).

I received a complaint that the same question was being asked in multiple threads both of which had received answers.

In this instance I could not merge the threads so posted a link to the other thread containing the alternate responses.

My response which stated clearly why the threads needed to be merged (but could not) and asked posters to refrain from multi posting was polite and constructive.

There is no issue with asking whatever you like but please do not ask the same question in multiple old threads as it is not possible to merge the answers and people reading these posts in future may only be reading half of the answer if the posts are not linked together

So, in short, yes, this is my business and if you want to keep asking questions on the site start showing some respect for the one's on the site who are likely to be the people helping you with future queries.

Shaun.

ella · Member

Yes you are right I do respect them very much,that`s why I asked they opinions!I understood yours one too don`t worry.
Actually wast the same questions maybe similar...Did you ever heard about second opinion,maybe not.

Shamus · Forum Moderator & Expert

ella wrote:
Yes you are right I do respect them very much,that`s why I asked they opinions!I understood yours one too don`t worry.
Actually wast the same questions maybe similar...Did you ever heard about second opinion,maybe not.

I'm not worried at all. Your the one asking the questions, not me.

Not sure what sort of site that you are used to but your attitude is out of place on this one.

You don't need to ask the same question twice on here to get multiple opinions. If there are alternate views then the members will voice and discuss, and even occassionally argue about them in response to a single question.

Anyway, stop trying to be clever with the snide comments because you will not win.

Spamkebab · Expert

Spam is busy printing front row tickets if anybody would like to purchase one.

Rhianrach · Expert

Spamkebab wrote:
Spam is busy printing front row tickets if anybody would like to purchase one.

Do you have popcorn?