Prior Year Adjustments

Prior Year Adjustments

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I am doing a set of company accounts for the year ended 31-March-2011. I have just realised that there was a material error in the accounts for the year ended 31-March-2009.

This error is as follows:

£46500 was paid and posted as £40420 to P&M additions and £6060 to VAT.  The whole amount should have been posted to the Directors' Loan Account as it was in fact a payment for personal tax.

In the years ending 31-March 2009 & 31-March-2010, there were Corporation Tax liabilities as the company is new and made losses which have been carried forward. Capital Allowances have been incorrectly claimed on the 'asset' in both years.

Thanks.

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Image is of a pin up style woman in a red dress with some of her skirt caught in the filing cabinet. She looks surprised.
By Monsoon
04th Jul 2011 12:11

STRGL

Disclose in statement of recognised gains and losses in the accounts.

Repair prior CT returns. Correct the VAT on the next VAT return as under £10k (might want to voluntarily disclose in a letter though).

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