# Accounting question



## BlueSpud (27 Apr 2007)

I am approaching my financial y/e (30th April), and have a contract with a customer that runs into my next financial year.  What are the journal entries that I need to enter to reflect this; i.e. 
1) the full invoice goes into 06/07, say €12k.
2) I want to remove the 07/08 portion, say €8k.  What accounts to I dr & cr to make this happen, journal dated 30/04/07 
3) I then want to put the €8k into 07/08, which accounts do I dr & cr (presumably the same pair but in reverse), journal dated 01/05/07.

Thanks.


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## erw fran (27 Apr 2007)

2) Credit the PnL with 06/07 proportioned amount, Debit Balance Sheet 
3) Credit PnL with 07/08 Portion, Debit Balance Sheet


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## BlueSpud (27 Apr 2007)

Should these not be the opposites of each other?

As stated, I would be crediting the PnL in both years.  I thought that both transactions should balance out to zero.


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## erw fran (27 Apr 2007)

The PnL would show a total credit balance of 12k over the two years, with two credit postings in either year for the portioned amount for that year. So that once all postings are finished you have 12k on the PnL and 12k on the balance sheet.


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## BlueSpud (27 Apr 2007)

Just goes to show what I know.

Thanks a million erw fran.


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