Good Morning
Please could someone kindly assist me.
During our recent audit a prepayment was entered for an invoice received on the last day of our financial year. The amount related to business rates for the 19/20 year. This amount is paid monthly by DD. We don't usually enter an invoice to a suppliers account for this, it is journaled on a monthly basis by entering a bank payment to the rates nominal code of 7030 for the monthly amount - ie £199.
The query I have is that I have £1990.80 (10 months rates) sitting as a prepayment, this needs to be reversed in this financial year. Usually I would enter a reversing journal to Cr prepayments and Dr the rates expenditure.
However, as I am entering a monthly bank payment to offset this over 10 months, I would be duplicating the expenditure account.
What is the best way of reversing the journal and offsetting the monthly Bank Payment without creating duplications in the accounts?
To be honest I am now going round in circles with it!
Any advice gratefully received.