Where Apply advanced rounding rules has been selected, a separate rounding account is allocated for BOTH Profit and Loss Account and Balance Sheet rounding differences.
Any difference found within account codes 0000 – 3999 will be allocated to the Profit and Loss Account rounding account (default rounding account is 3390).
Any difference found within account codes 4000-9999 will be allocated to the Balance Sheet rounding account (default account code is 5200).
For Example (Illustration only):
Account Code |
Amount |
Rounded |
Profit and Loss Account |
||
Sales (0000) |
(1000.55) |
(1001) |
Sales 1 (0001) |
(110.55) |
(111) |
Accountancy Fees (3301) |
500.00 |
500 |
Balance Sheet |
||
Trade Debtors (4400) |
1111.10 |
1111 |
Bank Account (4800) |
4601.10 |
4601 |
Bank Loan (5100) |
(5000.50) |
(5001) |
Share Capital (7000) |
(100.60) |
(101) |
Total |
0.00 |
(2) |
ROUNDING DIFFERENCE |
||
Profit and Loss Account (3390 – Sundry Expenses)) |
1 |
|
Balance Sheet (5200) |
1 |
|
Total |
- |
Change rounding account
If there is no balance in account 3390 (Sundry Expenses) or 5200 (Trade Creditors) you may not wish for the Trial Balance (and resulting accounts) to allocate £2 to these accounts.
To net the rounding difference off with another amount, select an alternative rounding account under Rounding Differences at the bottom of the Posting screen.
See KB3094 - What are Advanced Rounding Rules? for more information.