Why can't I enter a negative number in 'Current Assets' AC455 on balance sheet in HMRC fillinig services? I have used software to prepare accounts ,but i wanted to try to submitted using HMRC services instead and its not letting me to enter negative Currents Assets Figure. Can anyone please tell what shoud i do? I have attached printscreens below.
Company made a loss:
Current assets(1,602)
Creditors: amount falling due within one year 0
Net current liabilities (1,602)
Total assets less current liabilities (1,602)
Net liabilities (1,602)
Capital and reserves (1,602)
Replies (12)
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Well, the answer sort of speaks for itself.
You shouldn't have a negative current asset. It must be a current liability surely?
Surely the accounts you have prepared using software aren't showing a negative 'current assets' figure???
Carp software if it does
It is about definitions
Assets are a posative value
Liabilities a negative value
A bank overdraft is a liability
HMRC better at understanding accounts than your software?
Not aware of any recognised accounting software that gets this wrong
What are you using?
But to be clear you can have a credit balance part making up a disclosed debit balance asset.
Eg Sales Ledger DR £100,000
Bad debt provision CR £15,000
Disclosed asset £85,000
Do also remember Current Assets is a group heading rather than an individual nominal.
I won't have a word said against VT, but it's entirely possible for negative figure to appear under current assets, you just have to make a manual adjustment to move it to liabilities
I won't have a word said against VT, but it's entirely possible for negative figure to appear under current assets, you just have to make a manual adjustment to move it to liabilities
You're right.
You can re-categorise the bank account as a liability on VT.