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Profit and loss report not correlate with available funds

Problem reported by Jayesh Patel 7 years ago

I can't seem to find any explanation on how to fix this, other than potentially this: https://clearbooks.co.uk/network/ideas/view/why-does-the-income-by-customer-report-not-match-the-profit-and-loss--1784.html

Although that doesn't really explain how to fix the problem.

I can't seem to figure out why the P&L revenue doesn't match the amount listed as available in my account. I've tried working 'backwards' by seeing the percentage difference/amount and seeing if that accounts for it, but I can't see any explanation.

Thank you

3 Replies

Hello Jayesh,

I have looked at your account and can see why it is confusing. The bank balance is showing up on the Balance Sheet as it should.

If you go to Reports > Trial Balance, there you will be able to see the double entry for the receipts and payments. The difference between your bank account and the profit and loss is the VAT control account.

Regards,

Vanish

Hi Vanish,
I appreciate the response, and it makes sense.

Although, it seems I've done something wrong in entering my invoice's VAT.

I have been charging 20% on my invoices, as an example, if you see 30 December 2013:

  • Net was £1,269.22. With VAT on top at 20%, this equals £1,523.06 (which is the amount reaching my account on CB)
  • The system however is viewing that transaction as the 20% VAT beign of the £1,523.06 charged, and therefore my VAT account is recording the amount as £304.61 (the correct value should be £253.84).

    I'm very confused!

Also, if I look at the 'receipts' section, the VAT seems to be correct? (i.e. £253.84)

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