Payroll Journal Entries for Month End

Discussion in 'Accounts & Finance' started by Kristian, Jan 30, 2010.

  1. Kristian

    Kristian UKBF Newcomer Free Member

    Posts: 2 Likes: 0
    Hi All,

    I am processing payroll journal entries for a month end, and really need some assistance. I have employee's who have had a pay advance of £100 through the month. The payment has already been posted on Sage from the bank a/c (1200) to Net Wages (2220)

    As the advance has been deducted off net wages on the payroll report it is leaving my dr side (Gross Wages, and ER NIC) heavier than my cr side (net wages, ER NIC, EE NIC, PAYE) by £100.

    What on earth do I do with the cr side of the journal to make it balance?

    Kris:|
    Posted: Jan 30, 2010 By: Kristian Member since: Jan 30, 2010
    #1
  2. Jenni384

    Jenni384 UKBF Newcomer Full Member

    Posts: 4,812 Likes: 1,530
    The monthly payroll journals should be normal. The only difference is you've got 2 payments Cr bank Dr net wages (the advance and the balance) instead of just the one at month end.

    I take it the £100 has been run through payroll and had tax and NI deducted?
    Posted: Jan 30, 2010 By: Jenni384 Member since: Oct 1, 2007
    #2
  3. Kristian

    Kristian UKBF Newcomer Free Member

    Posts: 2 Likes: 0
    Hi Jenni,

    Yes the advance payment has already been posted on Sage as it was a BACS payment, so it has been posted as a bank payment from the bank account to Net Wages. The deduction is then on the payroll report. Do I have to Cr the Bank Account and Dr Net wages again then when doing the journal. I have it on an excel spreadheet if you want to see it. I'm getting really frustrated with it now though as I can't seem to get my head around it.

    Kris
    Posted: Jan 30, 2010 By: Kristian Member since: Jan 30, 2010
    #3
  4. Jenni384

    Jenni384 UKBF Newcomer Full Member

    Posts: 4,812 Likes: 1,530
    Hiya

    I'll PM you my email and if you send the spreadsheet I'll have a look at it for you :)
    Posted: Jan 30, 2010 By: Jenni384 Member since: Oct 1, 2007
    #4
    • Thanks Thanks x 1
  5. Williams lester

    Williams lester UKBF Newcomer Full Member

    Posts: 2,254 Likes: 344
    Nothing better to do on a Saturday night Jenni?? ;)
    Posted: Jan 30, 2010 By: Williams lester Member since: Oct 16, 2008
    #5
  6. Jenni384

    Jenni384 UKBF Newcomer Full Member

    Posts: 4,812 Likes: 1,530
    I'm just making a video montage of a pole jam I went to today while my boyfriend cooks me dinner! Happy to help out while I relax ;) :D

    I think I sussed it out too :)
    Posted: Jan 30, 2010 By: Jenni384 Member since: Oct 1, 2007
    #6
  7. Williams lester

    Williams lester UKBF Newcomer Full Member

    Posts: 2,254 Likes: 344
    Sounds good! I am trying to make a beer bottle pyramid from empties after filing our last 4 returns this afternoon.
    Posted: Jan 30, 2010 By: Williams lester Member since: Oct 16, 2008
    #7
  8. rakhee

    rakhee UKBF Newcomer Free Member

    Posts: 1 Likes: 0
    Hello

    Please can anyone help me with payroll journal with SMP and advance deductions?
    Posted: Aug 17, 2010 By: rakhee Member since: Aug 16, 2010
    #8
  9. elainec100@cheapaccounting

    elainec100@cheapaccounting UKBF Newcomer Full Member

    Posts: 13,271 Likes: 2,877
    yes we can but need more info
    Posted: Aug 17, 2010 By: elainec100@cheapaccounting Member since: Nov 4, 2005
    #9