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Income appear negative in work accounts

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Income appear negative in work accounts

  • This topic has 1 reply, 2 voices, and was last updated 5 years ago by John Moffat.
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  • August 18, 2020 at 6:15 pm #581091
    Candy
    Member
    • Topics: 135
    • Replies: 79
    • ☆☆☆

    Dear tutor,

    I have been taking a look at accounts at work and I found that costs including donations, endowments and overhead income appear as negative and yet staff costs appear as positive amounts.

    Can you please explain the logic behind this in accounting systems?

    August 19, 2020 at 6:36 am #581120
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54786
    • ☆☆☆☆☆

    I am sorry but I really have no idea what is happening in your accounts at work, and the accounting systems are of no relevant at all to Paper FM.

    Overheads are costs and not income so it doesn’t really make any sense at all. I suggest that you ask the accountant where you work to explain what is happening.

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