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Balance sheet discrepancy

Balance sheet discrepancy


Whilst putting on opening balances(b/s) for a new client I am unable to reconcile the creditors amount owing. after searching the manual ledgers I have now discovered that the previous accountant made a miscalculation on one supplier record i.e they omitted 1 outstanding invoice from the creditor total. Could someone advise on how best to deal with this as if i put an invoice on for the current year then it will have been reported twice and if I change supplier opening balance then this means that the balance sheet from the last years accounts does not match my b/f balance sheet on sage.


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23rd Feb 2016 18:44

Will it ?

Will it have been reported twice ?

It doesn't seem to have been reported in the "official" accounts.  Just in the manual ones.


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24th Feb 2016 09:59

If it was missed out

of last year's accounts then put it in this year. Your creditor balance will match at the year end, the invoice will only be in one year's accounts, job done.

If the previous accountant has somehow included the invoice in purchases last year but not in the creditor listing then find out where he put the corresponding entry for it and reverse it against creditors.

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24th Feb 2016 10:02

Hard to say without seeing the books, but if manual ledgers with in effect the invoice posted to presumably both the  individual purchase ledger sheet and to  the PLCA, but somehow omitted from total re PLCA used in accounts, then obviously for the debits and credits to square previous accountant needs to have fudged  the books somewhere or the cost/vat debits were not posted re this invoice, presuming that other than this the TB will balance.

My solution would depend on quantum:

If small then either post additional opening creditor and debit sundries or post payment to pay the invoice in the new year to sundries rather than PLCA and ignore in creditors b/fwd.

If significant work out how other accountant got accounts to balance from the manual ledgers with the invoice fully posted (both sides) but omitted from the PLCA total (A lot of ticking)

p.s. I have not seen a manual nominal/sales/purchase ledger set of books for years. I still have a coupe of old Twinlocks away in a cupboard somewhere, the one from my late father's firm even has his firm's name inscribed on the front; they do have a certain majesty compared with reams of A4 paper.

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