this opening balances is still confusing me .. i posted all the supplier opening balance as of last year that wasnt paid
the suplier invoice that was dated 1/12/2009 but the period related to Jan 2010 this one when i posted the opening balance of that invoice for 1.12.2009 the other side went to 9998 suspense so i CR 9998 with the invoice dated 31/12/09 DR 1103- Prepayment dated 31/12/09
then for this year i now
CR 1109-Prepayment date 01/01/2010 DR 5000- Supplier purchase code 01/01/2010
but then what of all the other invoices that is just for 2009 but it just was not paid in 2009 when i post them as opening balance it goes straight to the 9998 so now my question is where will i move them to please help
Where are you posting these opening balance, actually in the suppliers accounts as you open them if so these should post automatically to your creditors control and then to your suspense as you also need to post opening balances to your purchases and possibly your vat if you are registered as the other side of the double entry.
i post it directly from the suplier acct. so i go into the supplier account and click on the opening balance button the other side goes to creditor acct as i have check but the other side goes to suspense not my question is were do i move it noe from the suspense account to ?
so basically when i post the opening balance do i then CR 9998 DR Retained earnings
If its an opening balance for a supplier then you also have to post corresponding opening balances to somewhere on the debit side, so in its simplest form your would,
OB £1000 to supplier account which would show as,
OB £1000 on the credit side of your creditors control a/c
You would then post an opening balance of £1000 to your purchases a/c debit side via a journal crediting the suspense a/c this should dispose of your suspense account.
Basically you enter all the supplier and customer opening balances then do a trial balance. You then need to clear the debtors and creditors the balances of which will be in the suspense account by journalling them out. Then enter the nominal opening balances. Otherwise when you enter the nominal opening balances you will have doubled up.
thank you all okay which one do i take steve you say i post the opening balance to my purchases... but you see i dont want to touch my purchases because they already relate to the last years acct so if i DR into my 5000s which is my purchases i would just be doubles my purchases as it already was declared in 2009.
Semsley are you saying that when i post all the opening balance i then CR the suspense acct DR the creditors or the debtors which ever o/b am posting
cus it would effectively clear the suspense but will it not affect the creditors i was thinking of taking it to retained profits 3200 as it relates to last years figures but again not sure
that is for creditors and debtors what of my bank statment balance where does this go to ?
Never having set up a company before apart from for the AAT computer accounting unit, this is all quite interesting.
In the book you set up your customers and suppliers with opening balances which gives you your control account balances and a suspense account, then you just enter everything else as opening balances and this gives you a trial balance without a suspense account. We never had to clear the suspense first. Why do you have to do it like this?
After thinking is it because you are re-entering control account balances?
-- Edited by Rhianrach on Friday 18th of June 2010 04:05:54 PM
