How do I post a Prior Year Adjustment covering several years?

The example below gives details on what postings are required. A company has found out that it has been underpaying rent over the last 3 years. It now has a creditor of £15,000 and needs to charge additional rent of £15,000 (£5,000 for each of the previous 3 years). Comparative Year The comparative year needs to be adjusted such that it reflects the position as if the rent has been correctly provided for. Dr Rent 229 5,000 Dr Profit and loss 968/1 10,000 Cr Other creditors 767 15,000 Note that only £5,000 is charged to the Profit and Loss Account (a/c 229) in the comparative year, the other £10,000 would have been charged to the Profit and Loss Account in earlier years and so an adjustment is needed to the Profit and Loss Reserve Brought Forward account (a/c 968/1). Current Year The current year has similar adjustments to a standard Prior Year Adjustment and would be the total amount of the adjustment. Dr PYA 475 15,000 Cr Other creditors 767 15,000 Note: In order to show ‘As Restated’ above the comparative column, please select: Edit | Data Screens | Notes to Financial Statements | Prior Year Adjustment . You can also add an additional/replacement note from this screen.

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