How to account for an error payment

[Boo]

So you pay a professional but can't get help so you have to resort to a forum for advice.. You know how this looks don't you.....

It looks to me like a contractor asked a contracting related question on a forum dedicated to contrating questions and got an unhelpful reply from the resident troll, NLUK. Again.

Boo

[Jessica@WhiteFieldTax]

The most pragmatic way is either:

(a) enter as sales and subsequent refund;

Or (b) post both to sundries.

So long as both items are in the same place they will contra out.

Yes, you can post to suspense, etc, but that relies on knowing a bit about the double entry system devised by an Italian Monk some years ago.

[stek]

Credit Bank, debit Suspense Account. Remember to hold your breath when you enter the credit into the ledger, and only release it when you've entered the debit.

Or something like that....

[northernladuk]

Hoped I wouldn't have to add this bit. I would ask my accountant, but (a) speaking the them is like getting an audience with the pope (b) they wouldn't know, (c) it would take them 3 weeks to answer and (d) the answer would be wrong.

So you pay a professional but can't get help so you have to resort to a forum for advice.. You know how this looks don't you.....

[unixman]

You really shouldn't feel like that about your accountant, change to one that is easy to talk to.

Put it in as a correction, note against the credit and debit indicating it was paid in error, very simple really.

Thanks TykeMerc, that sounds about right. And regarding accountants, yes I will be changing soon.

@borderreiver thanks for the suggestion but they have asked me to pay it straight back.

@Alan yes I will be changing soon, thanks.

[ContrataxLtd]

Hoped I wouldn't have to add this bit. I would ask my accountant, but (a) speaking the them is like getting an audience with the pope (b) they wouldn't know, (c) it would take them 3 weeks to answer and (d) the answer would be wrong.

You need a new accountant!

If you simply repay the money to the agency you could simply contra off the entries on your bank statement and ignore both of them as they will cancel each other out, this is the simplest thing to do.

If you use an online portal or similar and need to account for the payments just put both the money in and money out to your trade debtors account and they will cancel each other out in there.

Martin
Contratax Ltd

[Alan @ BroomeAffinity]

Hoped I wouldn't have to add this bit. I would ask my accountant, but (a) speaking the them is like getting an audience with the pope (b) they wouldn't know, (c) it would take them 3 weeks to answer and (d) the answer would be wrong.

Extraordinary that you put up with this. Why not move?

[borderreiver]

Book it as an advance payment on your next invoice? It will be easier for them to just subtract it from the next invoice amount and pay the outstanding amount, I imagine.

[TykeMerc]

You really shouldn't feel like that about your accountant, change to one that is easy to talk to.

Put it in as a correction, note against the credit and debit indicating it was paid in error, very simple really.

[unixman]

Hoped I wouldn't have to add this bit. I would ask my accountant, but (a) speaking the them is like getting an audience with the pope (b) they wouldn't know, (c) it would take them 3 weeks to answer and (d) the answer would be wrong.

[unixman]

My agency had an issue with their payments system and accidentally sent my company a payment in the amount of a few hundred pounds. I am about to pay it back. I was wondering whether to put this in the company books and if so, what to enter it as.