Siffing my way through this back log of paperwork.
I have set up an account for a supplier (Potatoes) everything is find except i have now discovered a statement from the supplier "Balance brought forward 1/3/10 - £1899.00 The client told me he started with nothing, owed nothing and started to trade. Now turns out that he has infact inherited the debit from suppliers from the start of business of the 1/3/10 - so i have asked him to contact suppliers and get a statement of account. I presume i will have to do a journal entry for opening balance - given that this is not his money he has put in but a debit he has inherit with the business I use VT+ What would be the journal entry?
If its a debt he has inherited, I would be tempted to Cr "Other Creditors" in the balance sheet, or something along those line as long as it shows as a liability on the balance sheet, and then Dr the capital account.
Then once it has been paid, you would Cr Bank and Dr the creditors account to clear it off.
