The debtors note shows what makes up the debtors figure on the balance sheet. Tax Optimiser builds it entirely from the trial balance, so it always agrees with the balance sheet.
What this note shows
Debtors are amounts owed to the company. The note analyses them into:
- Trade debtors (customers who owe for sales)
- Amounts due from group undertakings etc.
- Accrued income and prepayments
- Other debtors
It also shows the total, plus a line for amounts falling due after more than one year when there are any. The small company balance sheet formats require amounts falling due after more than one year to be shown separately for each debtors item (The Small Companies and Groups (Accounts and Directors' Report) Regulations 2008, Schedule 1). The note applies to FRS 102 Section 1A accounts. FRS 105 micro-entities show debtors as a single balance sheet line with no note.
Where the figures come from
| Printed row | Trial balance accounts |
|---|---|
| Trade debtors | Trade debtors, Sales ledger control account, Provision for doubtful debts, Provision for credit notes |
| Amounts due from group undertakings etc. | Amounts due from related parties, Intercompany loans |
| Accrued income and prepayments | Accrued Income, Prepayments |
| Other debtors | Everything else in the debtors group of the trial balance |
"Other debtors" is the balancing row: it is the balance sheet debtors total less the three named rows. Any debtor account that isn't one of the named accounts, such as a director's loan account, VAT recoverable or a custom nominal, lands there. The note can't drift from the balance sheet. In the demo, other debtors of £11,000 is Alex Morgan's director's loan, which is also disclosed in the loans to directors note.
Provisions for doubtful debts and credit notes are credit balances, so they reduce trade debtors.
Completing the note in Tax Optimiser
Open the period, choose View Accounts, then Notes in the Actions menu on the left. Select Debtors and set Show this note in the accounts to Yes. All the boxes are read-only. To change a figure, correct or recode the trial balance.
The line "Included above: amounts falling due after more than one year" only prints when a figure is set, and the editor currently has no box for it. If the company has debtors due after more than one year, for example a loan repayable over several years, add a sentence in the Additional note for Debtors giving the amount for each year. Click Save changes to save the note and rebuild the accounts preview.
Wording templates
The Additional note for Debtors section prints under the table and has one template:
- Impairment provision – "Trade debtors are stated after a provision for impairment of £{{Provision}}." You'll be asked for
{{Provision}}.
How it appears in the accounts
In the demo accounts the note is note 11. The "Amounts due from group undertakings etc." row is nil in both years, so it isn't printed.
Frequently asked questions
Why don't the rows in my debtors note match my nominal codes?
The note groups accounts into four rows. Only the named accounts in the table above go to trade debtors, group and related amounts, and prepayments. Everything else in the debtors group goes to Other debtors, so the total always matches the balance sheet.
Where does a director's loan account appear in the debtors note?
In Other debtors. Loans to directors also need their own disclosure in the loans to directors note.
How do I show debtors due after more than one year?
There is no input for it in the editor at present. Add a sentence in the Additional note for Debtors stating the amount falling due after more than one year, with the comparative.
Why is "Amounts due from group undertakings" missing from my printed note?
Rows that are nil in both years are left out. The row only prints when the related party or intercompany loan accounts have a balance.
Where to go next
- Guide to the notes to the accounts – how the Notes screen works
- Previous: Dividends note
- Next: Current asset investments note
- Loans to directors note
- CT600A: loans to participators (s455)