Hi, I have recently taken over doing the accounts for a charitable organisation. I am in reciept of their last years P&L and B/S.
My issue is how to deal with a compensation claim paid out if there was no provision put in the accounts for last year. I believe this is not an allowable expense for a charity but i now need to show the amount leaving the accounts in the balance sheet for this year. How do i account for this? If i show it debiting the bank account how do i account for the credit if im not allowed to show it in the p&l.
Any help appreciated
My issue is how to deal with a compensation claim paid out if there was no provision put in the accounts for last year. I believe this is not an allowable expense for a charity but i now need to show the amount leaving the accounts in the balance sheet for this year. How do i account for this? If i show it debiting the bank account how do i account for the credit if im not allowed to show it in the p&l.
Any help appreciated
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