Page 1 of 1
Salary journal
Posted: 04 Aug 2008, 15:43
by Amarilla
This will be the first time I post the salary journal in line 50 (v.10) with SMP. I'm not quite sure what should go which side. In the template there are two lines with the nominal code of 7011, one is SMP and the other is SMP reclaimed. Don't really know what should be included in these.
Could anybody help?
Thank you. Amarilla
Posted: 06 Aug 2008, 16:16
by brucedenney
The two sides of the journal represent two things.
The part in the balance sheet represents money you are claiming from or paying to other people.
The part in the Profit and loss account is the cost of employing people.
SSP and SMP are negative costs, they are paid for by the government, so they should be credits rather than debits and vice versa in each of the two sections. In the balance sheet it is money owed to you rather than money you owe to the tax man, in the P&L it is a reduction in the cost of employment.
I hope this clarifies things for you a bit.