Hi all,
I recently started working in practice again after around 12 months in industry. I started the first job and queried some errors on VAT, specifically VAT being claimed on private expenses (confirmed as nothing to do with the business by the client).
I amended the accounts to show the errors as needing to be corrected as I was taught to & noted on file that these should be communicated to the client. These adjustments have subsequently been reversed in the accounts!
My question is twofold - 1) Was I right in the first place, is this the correct way to deal with them? & 2) How do I stand ML-wise if the accounts have been changed subsequent to my preparation?
Thanks.
Replies (2)
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1. Debit Drawings/Directors
1. Debit Drawings/Directors Loan; Credit VAT liability. Tell the client to make the adjustment on the next return (assuming it's relatively small).
2. I think you need to ask the question of whoever altered the accounts and, if you're not satisfied, make the report. You're aware, so you're involved unfortunately.