how do i treat creditors from last year who have not or will not be paid this year on the balance sheet and P&L. where do the ones who will be paid in the next financial year go and what about creditors who do not require payment for any reason?
thanks
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A 'creditor who does not require payment' is not a creditor.
Amounts that are payable in the next financial year go under Current Assets>Creditors due within one year.
Amounts that are payable after that go under Creditors due after one year (After Net Current assets, before Total Assets'
Pass it back through the P&L
It should be passed back through the P&L. It could be shown as a special item so as not to confuse any gross margin comparatives etc, although the amount may be immaterial so that is not essential.
The entry would be to debit creditors in the balance sheet and credit the P&L