In the prior post we looked at how to sell an asset in GO HERE.
And since the cost of the asset was in the balance sheet, this left balances in the asset and a loss in this scenario still to be dealt with. The way to finish off the sale is to raise the following journal.
DR Sale of Asset 50,000 Sale account
CR Loss on Sale of Asset 50,000 Create an expense account
DR Loss on Sale of Asset 60,000
DR Accum. Depn – Asset 0 (Enter what is on the Bal Sheet if a figure there)
CR Asset (at cost) 60,000
If you have questions, or need to ask questions? Give us a call! No obligation – solve your queries now!
Client called asking how to sell an asset (a car purchased for $60,000) in the business books.
We raise an invoice (service type) to the buyer with GST for $50,000 and allocate to Sale of Assets (may need to create the account in the # 4’s (MYOB) or Sales (Quickbooks) with that name. The other side is automatically to Trade Debtors (as you are owed the money).
When you are paid, you Receive Payment which draws from Trade Debtors and deposits to the bank.
Now there is still the $60,000 in the asset, but with the $50,000 sale, this means a $10,000 loss.
What is the next step to deal with these amounts? The answer will be in a few days!
Super Calculation Different amount to another with the same wages
Client called and was panicking that the super calculation for a new employee was different to another employee with the same wages.
I questioned her to be clear about the employee set up and we checked:
Same super category used? Yes
Same wage per hour and same GROSS in payslip? Yes
Any other pay categories used – overtime, allowances… NO
OK when did the first employee start? – Last month
And when did the new staff start? – Last week
OK – the first employee has two weeks of pay, the new employee has one week of pay
MYOB and Quickbooks balance super over a month, because super does not need to be paid until $450 is earned in month. The software will generate no super if the first pay of the month if the gross is under $450. Over $450 super will generate, usually for most fulltimers.
When an employee starts the second week or third week, super is sometimes more for THAT pay as it is catching up for the total for the month – it keeps balancing and comparing for the gross for the month.
Generate a report for the payroll for the MONTH, including the super, and divide the super of one employee by the gross. You should get 9% (often 8.999%). Check other employees to confirm.
If you still have problems, give us a call so we can help sort it out! Paul 0407 361 596.
Quickbooks – Showing Credits when Paying Vendors/Suppliers
Print a Bill Payment Stub and send it. Go to File>Print Forms>Bill Payment Stubs, but if a credit is used 100% to pay a single bill it won’t show up on the stub.
So with the payment, include a journal report on the supplier that lists all transactions – all invoices and credits, and make it clear what was applied to what bill/invoice.
The ATO has announced their 2012-2013 Compliance Programdetailing targets in their vision. It describes the risks they are most concerned about and what it intends to do to address them.
1. Incorrect or Fraudulent Refunds
There will be a two stage strategy of warning taxpayers about potential incorrect claims, before a lodgment is made, and secondly checking lodged returns with various tools such as data-matching with Third Party information bodies – Centrelink, Banks etc). Incorrect returns may arise from simple errors, misunderstanding, lack of documents to substantiate claims, deliberately false claims and identity crime. In the past year more than 100,000 returns were halted, 80,000 requiring full review and $200 mill recovered.
2. Work-Related Expenses
Plumbers, Information Tech managers and Defence Force non-commissioned officers are the focus. These are considered high risk groups for mistakes in work-related expenses.The ATO plans to write to 90,000 people about assistance available and industry specific guidelines.
Particular focus will be on medical practitioners and other high income individuals. Financial products with wide promotion promising big benefits will also be under scrutiny, but middle and low income earners are just as likely to be involved. Tip is to check if there is a product ruling form the Tax Office on unusual schemes.
4. Omitted Income
Especially dividend, interest, capital gains and foreign income. Methods of detection include financial institution information, State Revenue Offices and automated exchange of info via tax treaties and Australian Transcation Reports and Analysis Centre (AUSTRAC)
So take care – 30% of people lodge their own returns, so use online guides and help on the ATO website to help you. www.ato.gov.au/individuals
Client emailed – Hope this is a quick question for you with an easy solution….We have an employee who has worked with us for only 5 weeks and he is leaving. The issue I have is that we had a quiet week and all staff had a week annual leave…he is in negative 26.6, he wants to dock his pay from last week. And get paid the difference but how do I enter his timesheet for the week and get rid of the -26.6 in annual leave???
Ok, it means he OWES you 26.6 hours, and you owe some normal hours and we work out the difference/net due.
And if a normal week is 38 hr, you pay him 38-26.6 = 11.4 to pay.
The way to enter in Timesheets in MYOB is to:
Enter all the regular hours each day across the week to base hourly (or payroll category)
Tick the white arrow left of the employee name and go to Payroll Details, then wages and tick on Unused Holiday Leave (or create if not there), click OK
Back in the Timesheet start another line and enter -26.6 hours to “Unused Holiday (or Annual) Leave” payroll category
This should give a Total hours at the bottom of the timesheet table as 11.40 due
Click OK and then do the pay run.
Normally we enter all regular wages so the employee record and entitlements are up to date.
Before starting another pay run to finalise the Entitlement Payout, we print the Entitlement Balance for that employee, under Payroll in Reports.
Then, when there are holiday hours left we should go to the employee card and tick (or create) “Unused Holiday Leave”.
Start a new pay run and allocate/pay those hours to that new category, then finish the pay run.
This will leave the hours against the Holiday Leave Accrual account still.
Then after the pay run, go to the employee card and put a Termination Date in at the Payroll Details tab section and enter the last working day.
You will get a warning that this will clear ALL entitlement balances.. click OK
So for your case, as for the -26.6 accrued, they will still be there, but when you enter the Termination Date, they will be cleared out to zero.
You have dealt with them by deducting off the regular hours to pay.
Last night at a local Meet-Up ( www.meetup.com) of South East Small Business, Business Development and Referral Networking, we had an interesting discussion about mistakes in business. For example: Whether to pay outright or borrow for stock/equipment?
The example one business gave, was paying outright for equipment that would be sign-written to advertise another business (he organised advertising for businesses). The issue was that spending $10,000 on the equipment took all the spare money the business owner had, while the payment for the advert was monthly over a multi-year contract.
Hindsight showed that it would have been better to get a loan for the equipment, then add his mark-up for the advert and service on top of the monthly re-payments, and he would still have his $10,000 to use for cashflow and marketing.
