I have received the journal to post the year end adjustments from one of my client's Accountant and I posted directly to the Debtors Control Account without thinking and run the year end. Now I have posted onto the current financial year, run the check data before I backup and it is showing that the Debtors Control Account doesn't match with the Sales Aged Balance. How can I now correct this?
Your client's accountant should have instructed you to post any adjustment to the debtors or creditors account to the suspense account. Then you should have posted the relevant invoices/credit notes to the relevant ledger, again using the suspense nominal account. The transactions in the suspense account will contra each other leaving a nil balance. The debtors or creditors account will then reflect the corrected balance, and most importantly, agree to the customer/supplier ledger. A tip is to post any opening balance adjustments or correcting invoices using the clients year end date (previous financial year end date), which will ensure that when you roll forward and print the trial balance b/fwd, the figures will agree to the final year end figures produced by the accountant.
You will therefore need to reverse the journal made using the original date and complete the process above. This should correct the problem.
Hope this helps!
__________________
"People who are exceptionally good in business arent so because of what they know but because of their insatiable need to know more"
