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sld2012
April 28, 2020
Question

How to record the receipt of a CJRS Grant?

  • April 28, 2020
  • 1 reply
  • 0 views

Hello all,

I have just received the Corona Job Retention Scheme grant into my bank account. How do i record this grant in QBO? Do I have to allocate this deposit to a payroll item? or do i create a new expense account and allocate this deposit to that?

 

Any help will be much appreciated.

1 reply

JackS
JackS
April 28, 2020

Hi @sld2012  

 

You will have to create an equity account, select accounting > chart of accounts > new > account type Equity > account detail > Prepaid capital or surplus > Give the account a mane e.g. Furlough > save and close > create a bank deposit > select New+ > bank deposit > ensure the bank account that you received the amount in to is selected in the account field and the corresponding date when the amount was credited in the date field > in the account column within the 'add funds to this deposit' select the equity account you set up above > you can if you wish enter HMRC in the received from column > enter the amount received in the amount column > save and close.

 

We have however also seen this the Furlough amount being classed as income, you would, therefore, select accounting > chart of accounts > new > in the account Type field select Income > in the detail type select discounts/Refunds Given > name the account > save and close. As above create the bank deposit however in the account column within the 'Add funds to this deposit' section select the income account you have just created.

 

We must make you aware that we are not trained accountants and anything advised should be qualified by an accountant.

S
sld2012Author
April 28, 2020
@JackS wrote:

Hi @sld2012  

 

You will have to create an equity account, select accounting > chart of accounts > new > account type Equity > account detail > Prepaid capital or surplus > Give the account a mane e.g. Furlough > save and close > create a bank deposit > select New+ > bank deposit > ensure the bank account that you received the amount in to is selected in the account field and the corresponding date when the amount was credited in the date field > in the account column within the 'add funds to this deposit' select the equity account you set up above > you can if you wish enter HMRC in the received from column > enter the amount received in the amount column > save and close.

 

We have however also seen this the Furlough amount being classed as income, you would, therefore, select accounting > chart of accounts > new > in the account Type field select Income > in the detail type select discounts/Refunds Given > name the account > save and close. As above create the bank deposit however in the account column within the 'Add funds to this deposit' section select the income account you have just created.

 

We must make you aware that we are not trained accountants and anything advised should be qualified by an accountant.

 

Thanks for the reply Jack, I have just created a Miscellaneous Income account and named it 'CJRS Grant'. As this helps identify it on the Profit and Loss Statement.

 

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