Help - New Job

[aat geek]

Hi,

I have just started a new job and am currently reconciling the payroll journals and have found that the previous person never entered any of the PAYE, NI and Gross wage entries for the year, only the net pays.

Do you think that the best thing to do is enter each of the corresponding entries as opening balances?

Any advice would be greatly appreciated.

Thanks

[R Lock]

For the current year, I would just do the journals. For previous years, I would presume that the accounts have been adjusted by the accountants or whoever does the year end accounts. The opening balances for the expense account would be nil and for the control accounts the OB would probably be the amount of the Paye and Nic cheque due on the 19th April. Every firm processes their wage journals slightly differently, some use a wages control account and others don't.
I am not sure if I have grasped your question properly?