To make the balance sheet correct at the end of the year do the Creditors control account and Debtors control account opening balances need to be reversed? These two accounts haven't had any other figures put into them through the year though so they both still stand the same but its just should they still be in the suspense account?
-- Edited by Suffolker on Tuesday 13th of October 2009 05:14:53 PM
Suspense Account should be cleared of any balances at the year end so as Accounts can be prepared. When you JOURNALED DEBTORS AND CREDITORS ON the system did you not have Individual Balances of each Sales and purchase Ledger Account reconcilled to the Debtors and Ledger Control Accounts.
Everything under 'Opening' appears to be the balances at the end of the previous 2007 year. I used the opening balance button on the Creditors control account and put in the 96,038 and the Debtors Control account 21,685, the same for the bank balance figure and also the 96,238 for the assets. From the above figures I wasn't 100% sure what else to do.
The opening Journal should be similar to the above on the Opening Trial Balance on the Computer. The Debtors Balance and The Trade Creditors Balance should Reconcile to a breakdown of Individual Accounts which the Accountant should have details of. It is obviously no use bringing these individual balance onto the computer now as they are history. When the Accounts are up to date With a New Opening Trial Balance You can post the Individual accounts using the Sales Journal Ie Net Vat Gross T9 for non vat this should balance in total to the gross total in the Debtors Control Account Use a similar method for the Creditors Control Account. Reverse the Debtors and Creditors out of Suspense Account and have a word with the Accountant for opening Debtors and Creditors Individual balance listings. HOPE THIS HELPS IN SOME WAY.
-- Edited by Davey on Wednesday 14th of October 2009 03:39:54 PM
-- Edited by Davey on Wednesday 14th of October 2009 03:41:07 PM
Thanks David thats great. So this year I should just do a journal with the figures you've listed in the trial balance but next time I should have the individual break down of the creditors and debtors in there too? Which then means the reversal will need doing?
Would the retained earnings be posted to nominal code 3100 Reserves?
Finally will all the above mean the balance sheet will be correct?
Thanks ever so much for your help David this has been stressing me out!
-- Edited by Suffolker on Wednesday 14th of October 2009 05:05:01 PM
-- Edited by Suffolker on Wednesday 14th of October 2009 05:06:42 PM
I would have word with the Accountant regarding the Balances he has supplied you with after i studied over the Extended Trial Balance the Profit of 44920 should be a debit balance in the Profit & Loss Account and not a Credit Balance which is showing in his Figures also there are no adjustments made to show how the Balance sheet Figures have been arrived at retained earnings should be a different figure from that shown on the Balance Sheet. ASK THE ACCOUNTANT TO GIVE YOU MORE OF A COMPLETE PICTURE before making any postings. The above Opening Trial Balance and Balance sheet may need furter adjustments.
