BAS Error Adjustment

Options
Julie Dinsdale
Julie Dinsdale Member Posts: 15 ✭
edited August 2020 in Accounts Hosted
I hope this does not sound stupid. I took over from a lady whilst she is on maternity leave. I found the Jul to Sep 2019 BAS had to be revised. On doing so, the ATO refunded us $1,832. I put it in Reckon as a 'make deposit' from the ATO, from account 'Tax Payable', which is the liability account. All reconciled fine but when looking on the balance sheet, it has increased the 'Tax Payable' liability account ie went from owing $21,866.55 to $23,698.55. I need it to do the opposite ie owe $20,034.55.

Any suggestions would be greatly appreciated.

Thank you.

Jules

Comments

  • Linda ABC
    Linda ABC Accredited Partner Posts: 1,131 Accredited Partner Accredited Partner
    edited June 2020
    Options
    Hi Jules - what you have done sounds correct...  and yes, it will make the Tax Payable liability balance account go up...  think of it this way - your Sept BAS revision has resulted in a refund of $1832 - so for example the balance might show as 1832 DR - indicating a refund...  then you receive the refund and enter it... the Make Deposit entry then credits 1832 to the Tax Payable account and the balance is NIL - all square.  so what you are seeing is the fact that the DR of 1832  was always there but was hidden in the balance from future transactions... so once the refund was cleared - you now see that the current amount owing is in fact more...  not sure if I have explained this well enough? does it make sense?
  • Julie Dinsdale
    Julie Dinsdale Member Posts: 15 ✭
    edited August 2020
    Options
    Thanks so much Linda.

    I am still a little confused but I will reread your response and think about it. I am sure you are right and good to know that what I did was correct.

    I know my boss is going to ask me why the Tax Payable account shows a higher figure than the Tax Summary Report.

    Thank you, I will reread and hopefully it sinks into my blonde head :)

    Jules
  • Linda ABC
    Linda ABC Accredited Partner Posts: 1,131 Accredited Partner Accredited Partner
    edited June 2020
    Options
    This is all due to timing (both of entries and also when reports were printed)... if you print off say the Tax Summary for March and it says the amount is for example - 3000 owing... you can check this against the balance sheet for the same period and using the same method (cash or accrual) - but it will only match - if all the previous months have been cleared within that same timeframe... but it sounds like the adjustment refund probably wasnt received until April - hence the balance sheet figure would have been out by that amount?  
  • Julie Dinsdale
    Julie Dinsdale Member Posts: 15 ✭
    edited August 2020
    Options
    Thanks so much Linda. Yes that makes sense.

    Thanks again for your quick response, I greatly appreciate it.

    Jules

Categories