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Post Info TOPIC: Incorrectly recorded as sales - prior year


Master Book-keeper

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Posts: 3813
Date:
Incorrectly recorded as sales - prior year


†I'm currently doing 20-21 accounts for a sole trader.

I've spotted that a couple of loans have been recorded as income in the 19/20 accounts totalling 3.5k.† Also interest to be added to be added to these and another loan (correctly recorded) totaling c£1200.

Turnover for that year was 97k.† Is that considered material enough to redo 19/20 accounts or can I tag on to 20/21 accounts?

I hate Paypal as they lump these loans into the sales for that month and with them being small amounts I never spotted them.† No excuse for missing the interest on the loan recorded correctly though.††



__________________

John†

†Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.



Senior Member

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Posts: 234
Date:

Hi John,

So a total of £4.7k of debits missing from the 19/20 P&L? What was the profit/loss for the year?

__________________

Ian

Ian Brown FCA
Onion Reporting Software Ltd

www.onionrs.co.uk

Sage accounts in Excel. No set-up necessary. Free trial.



Guru

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Posts: 1251
Date:

Agree with Ian what was the P&L for the year?

Would it be a major issue to amend the accounts?



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Doug

These are only my opinions of how I see things and therefore should not be taken as advice



Master Book-keeper

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Posts: 3813
Date:

Sorry, I forgot to answer your questions Ian and Doug.

Profit was c20k

Not a major issue to amend accounts.



-- Edited by Leger on Thursday 16th of December 2021 12:20:07 PM

__________________

John†

†Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.



Senior Member

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Posts: 234
Date:

Hi John,

Profit overstated by c 31%. I think I would on materiality grounds. I have no experience of how HMRC view these matters if corrected the next year. I presume they'd like their £940 in income tax a year earlier.

Regards,

__________________

Ian

Ian Brown FCA
Onion Reporting Software Ltd

www.onionrs.co.uk

Sage accounts in Excel. No set-up necessary. Free trial.



Master Book-keeper

Status: Offline
Posts: 3813
Date:

Thanks Ian†

When I originally posted I'd not factored in the profit ratio.† Will amend last years just to be on the safe side.



__________________

John†

†Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.

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