I have been asked to compile the annual accounts for a charity. Last year a gift aid provision was made but the funds never came into the bank due to various problems (new treasurer and HMRC not receiving the documents). Therefore the amount is still due to the charity.
However when I prepare the report for the annual accounts, the total charity funds to be carried over is out by this amount. If I deduct the gift aid amount it tallys.
Can anyone please advise me on how I should treat this. Do I reverse it and then make another provision? A bit confused so would really value some help.