by Shareon
(Calgary, AB, Canada)
When to Book an Accrual
My client's year end is Apr 30th. She never recorded her charged sales correctly. She booked the revenue and matched it to what was deposited in the bank from the merchant company but neglected to book the un-deposited amounts.
Apr 30th she took the charged sales desposited in her bank account from the merchant and Dr. Bank and then Cr. Revenue Account. Missing the un- deposited amount of $217.53.
Now that she has rolled forward to a new fiscal year the merchant has deposited the outstanding amount belonging to April $217.53. So now I have this opening balance that belongs to April I need to post but if I post this as a Cr. in the Un-deposited account it is not offset with a Dr. as there was no carry forward from the previous year. So if I post May's un-deposited amount as a Dr. ($747)my balance is not correct. It will show as $529.47. I am not sure how to fix this.
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