Question: How to calculate the total debt for Section J?
Answer: Calculation of total debt is based on client’s data from financials. It includes Current and Non-current loans and Non-current assets term receivables.
"Adding the opening and closing balances of the total debt of the company for the income year, and dividing this sum by two." - Its as per the ATO guidelines / formula. Below link for reference. -
- J Total Debt is the average of the debts over 2years, it is auto calculated.
- User cannot manually adjust this section-Item J if you have imported the financials.
Q: Negative amount in item "J" Total Debt
A: If it is a "negative" amount, You have to change it via the accounting system ie 'QuickBooks Online', from liability to assets since it is a negative amount. Once done, kindly reimport the financials.