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PAYE and Profit and Loss Account Query

  • 19-07-2012 4:10pm
    #1
    JohnW2008
    Registered Users, Registered Users 2 Posts: 29 ✭


    Hi everybody,

    I am self employed and have an extremely small business. I am doing my accounts for the first time and have a really basic question, which I hope someone might be able to help me with.

    First, I earned some PAYE income last year. Should I put the amount ,without any tax deducted, into my P+L A/C under Sales, or should I put the amount, after tax, was deducted, into the P+L A/C under Sales?

    Secondly, I have no fixed assets and basically no current- anybody ever seen a balance sheet, which is essentially blank?


    Thanks, John.


Comments

  • #2
    barneystinson
    Registered Users, Registered Users 2 Posts: 4,685 ✭✭✭barneystinson


    JohnW2008 wrote: »
    Hi everybody,

    I am self employed and have an extremely small business. I am doing my accounts for the first time and have a really basic question, which I hope someone might be able to help me with.

    First, I earned some PAYE income last year. Should I put the amount ,without any tax deducted, into my P+L A/C under Sales, or should I put the amount, after tax, was deducted, into the P+L A/C under Sales?

    Secondly, I have no fixed assets and basically no current- anybody ever seen a balance sheet, which is essentially blank?


    Thanks, John.

    Unless the money hit your business bank account (and therefore needs accounting for), I wouldn't enter it at all.

    If you are entering it, it is Capital Introduced on the bottom half of your balance sheet, and it's the net amount after tax etc... I.e the amount that you actually received in cash/bank.


  • #3
    AugustusMinimus
    Registered Users, Registered Users 2 Posts: 4,564 ✭✭✭AugustusMinimus


    JohnW2008 wrote: »
    Secondly, I have no fixed assets and basically no current- anybody ever seen a balance sheet, which is essentially blank?


    Thanks, John.

    Quite possible but very unlikely. Are you operating without a bank account and purely on a cash basis, with any cash balances being withdrawn from the business and treated as drawings ?


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