Deferred non-commerical losses from prior year on Chart of Accounts/summary

1

Hi there,
I understand that manager uses perpetual accounts for its bookkeeping system. As a Sole Trader in Australia, I am eligible to defer losses from prior financial years under the https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/losses/non-commercial-losses/how-to-defer-your-losses rules and I am wondering how I would represent this in my chart of accounts and what journal entries I would need to make?

I tried adding an expense account “deferred non-commercial loss” and debiting “owners equity” on 30 Jun and then crediting “owners equity” on 1 Jul. This works for the first year, but does not work beyond the first year. Hope you guys can help, or point me in the direction of how to do this properly.
Cheers, Erik

2

Deferred non-commercial losses are irrelevant to Manager. They are deferred in your income tax return.

3 Likes