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Accounting for CT Reallocations

Hi, I needed some advice on how to account for CT Reallocations as a result of Credit Interest received from paying CT early in previous years.

For example:

CT due last year:  1,669.36

Repayments/Reallocations:  44.79

Total to pay:  1,624.57

The balance sheet for this year's accounts is off by this 44.79 amount because 1624.57 had been paid last year instead of 1669.36... how do I factor this in to get the balance sheet to match?

Many thanks for any help in advance.

Eti

 

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19th Apr 2018 18:24

Credit interest should have been shown as taxable interest received. The extra income on p+l should make it balance shouldn't it?

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By Ruddles
19th Apr 2018 18:31

Surely your accountant ought to have been able to sort this for you?

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19th Apr 2018 19:27

DR CT in balance sheet £44.79
CR Interest received in P&L £44.79

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19th Apr 2018 21:13

Welcome to basicbookkeepingWEB

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By eti7
19th Apr 2018 22:28

Thank you Marion and Wanderer for the help!

It balances now if i include the 44.79 as interest receivable on the P&L.

I hope this helps anyone else with a similar question :)

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to eti7
20th Apr 2018 07:53

eti7 wrote:

I hope this helps anyone else with a similar question :)

Any comment Andy?

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to atleastisoundknowledgable...
20th Apr 2018 11:26

It won't. Every poster thinks their question is original and their research is badly hampered by the worse than useless search facility on this site.

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