Share this content
8

Previous Years' Adjustment

Previous and Current Years Accounts

Didn't find your answer?

Hello there,

I posted a cost £6250.00in last financial year (2017/18) to an overhead costs (this is was the first installment of Website), the remaining costs £35,000.00 I have capitalized 2018/19), I know I have made a mistake but now can I make a journal to take the 2017/18 costs into this year 2018/19? If so would the journal be:

Dr Fixed Asset

Cr Overhead Costs

Or should I just forget it and leave.

Thank you in adavance.

Dkb

 

 

 

Replies (8)

Please login or register to join the discussion.

avatar
By Accountant A
28th Nov 2019 18:27

What does your manager say? Presumably it's their call, or the FD's?

Thanks (0)
Replying to Accountant A:
avatar
By DKB Tiger
29th Nov 2019 09:40

Well I am looking into it , no FD, have a head of finance but I have been asked to look into it

Thanks (0)
avatar
By SXGuy
29th Nov 2019 06:44

35k for a website? Wow

Thanks (0)
avatar
By paul.benny
29th Nov 2019 08:13

What's the life of your website and when did it launch? You'd probably have depreciated some last year and the amount charged to overhead may not even be enough.

Thanks (0)
Replying to paul.benny:
avatar
By DKB Tiger
29th Nov 2019 09:44

Well none got depreciated last year as I did not post it to the fixed asset, so the question can I do the journal or not?

Thanks (0)
avatar
By JDBENJAMIN
29th Nov 2019 09:49

Websites, if capitalised at all, should be depreciated over a small numbers of years, as they are rapidly updated and replaced with new stuff. For that reason it is unlikely that too much has been charged to the P&L. You might want to consider reducing the 2018/19 depreciation charge so that the WDV c/f matches what it would have been if the £6,250 had been capitalised. Personally, I would not adjust the previous year for this.

Thanks (0)
Replying to JDBENJAMIN:
avatar
By the_drookit_dug
29th Nov 2019 11:58

Good suggestion.

Thanks (0)
Replying to the_drookit_dug:
avatar
By DKB Tiger
29th Nov 2019 14:09

Thank you

Thanks (0)
Share this content