End of year accounts

[auzzie]

If i credit the debtors by �xxx what would be the debit entry?

[neo.]

Depends what you are doing

Dr Bank Cr Debtors for receipt from customer

or Dr Sales / VAT Cr Debtors for credit note

or Dr Bad Debts/VAT CR Debtors for bad debt w/off

or Dr Discounts paid Cr Debtors for discounts given

[auzzie]

I am doing year end accounts, have no customers as such. Work on commission, this is only paid when case completes. No invoices raised, statements of amounts payable are sent .But there will be "work in progress" if you like that has to be accounted for in the balance sheet. I can work out the amount for the debtors control account where does the double entry go? Is it to the P&L a/c?

[neo.]

When it becomes legally payable to you (ie paperwork issued for payment) its Dr Debtors Cr Commissions Receivable on P&L as income. Then when its received Dr Bank Cr Debtors.

When its not legally payable yet (no paperwork sent out by you or to you) then its Dr Work in Progress (Balance Sheet) Cr WIP on P&L or Cr Sales(UTIF40 recommendation), recognising it as being income due for the period at its income value, now.

[auzzie]

Thanks Neo, sounds like a UTIF40 Jobby then..........over to the accountant for that!!!!