Re: P&L Question

On 27 Nov, 20:23, "Giganews" <gortnama...@xxxxxxxxxxxxxxxxxx> wrote:
Hi

It is many years since I worked in management accounts but I was roped into
doing the annual accounts for a friends flat management company (12 flats in
1 block) All is straight forward except that the accounts for last year
show a £120 management charge and a £30 filing fee that were never
collected. In this years accounts I have shown them as positive expenditures
in the P&L and as fees not collected in the balance ***. I am happy enough
with the balance *** but the P&L seems messy to me. Any ideas if I did the
correct thing? Thanks

Michael

Do you mean that you have a management charge and filing fee as
expenditure totalling £150 and a similar amount as revenue accrued and
therefore as well as posting the bank transactions you need to do the
following journal:

Dr Debtors (B/S) £150
Cr Service charges (P&L) £150
.