We will soon be ready to move on to the preparation of the accounts but first it is necessary to look at three major features of many bookkeeping systems. They should be understood because they are important and also because they generate some rather special entries. The page also deals with the important topic of the trial balance and the list of subjects is:
There is inevitably some law involved in the subjects of value added tax and payroll. For the purposes of these sections, UK law is exclusively used. This should be kept in mind if you operate in a territory other than the UK.
Value added tax is administered and collected by Customs and Excise, which is part of Her Majesty’s Revenue and Customs. The name of this august and revered institution is often shortened to HMRC and I have used this term extensively in the section.