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ukjamesuk


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Sage 50 account : question
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Hi, I'm a Sage learner and I have a problem with one exercise:

I introduced capital (£55000) into my business. I paid £54000 into the bank current account and £1000 was paid into the cash account.

I have created an opening balance into the nominal ledger for the capital but then I have unfortunately created a suspense account (9998).
Where should I put the capital in order to avoid a suspense account(9998)?

And next what to do with the bank current account and the £54000? What to do with the cash account and the £1000?

Could you help me please?

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MarkS


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Hi James

I would have done the following as a journal

Dr Bank 54k
Dr Cash 1k
Cr Capital/Directors Loan 55k.

Alternatively could have been entered as a bank receipt of 54k and a cash receipt 1k with the relevant other side going to the capital/director loan

I assume what you have done is showing either

Dr Bank 54k
Dr Cash 1k
Cr Suspense 55k

If so do a journal

Dr Suspense 55k
Cr Capital/Director Loan 55k

or you are showing this

Dr Suspense 55k
Cr Capital/Director Loan 55k.

If so you could enter 54k as an opening balance on SAGE to the bank and 1k as an opening balance on the cash account.  SAGE will process this as

Dr Bank 54k
Dr Cash 1k
Cr Suspense 55k.

So will cancel out the 55k debit in suspense and leave you with 54k in bank and 1k  in cash (what you want to show)

Hopefully either of the above solves your problem.

If not provide details of exactly what SAGE is showing.

Thanks

MarkS

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Mark Stewart CA

http://stewartaccounting.co.uk/

Providing accounting, bookkeeping, payroll and tax services to small and medium sized businesses across Central Scotland and beyond.
gbm


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Hi James,

Without wanting to sound condesending, if you're introducing big sums of money into a business, I would advise you to appoint an accountant. Not touting, just think it would be a good to get advice relevant to your circumstances and business.

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Regards,
Nick

Website: www.gbmaccounts.co.uk
Twitter

Factsheet | Starting a Business

 
MarkS


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Hi Nick

Probably has an accountant.  But appears not to have a bookkeeper.

But given the funds you have i would advise that a good bookkeeper is worth their weight in gold so you know where your business is at any point in time and to leave you to concentrate on what you set up your business for - to generate business.  You can probably earn more with your time in generating business that you can save in bookkeeping costs by doing the books yourself.

MarkS

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Mark Stewart CA

http://stewartaccounting.co.uk/

Providing accounting, bookkeeping, payroll and tax services to small and medium sized businesses across Central Scotland and beyond.
ukjamesuk


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-- Edited by ukjamesuk on Thursday 10th of February 2011 05:12:02 PM

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ukjamesuk


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As a trial balance, I have :


1200: bank current account

Debit: 54 000

1230: Cash account

Debit : 1000

3000: Capital

Credit: 110 000

9998: suspense account

Debit : 55 000


I don't know why it is written 110 000 into Capital? I only created one opening balance (£55 000) for the capital.

-- Edited by ukjamesuk on Thursday 10th of February 2011 05:09:39 PM

-- Edited by ukjamesuk on Thursday 10th of February 2011 05:10:00 PM

-- Edited by ukjamesuk on Thursday 10th of February 2011 05:10:46 PM

-- Edited by ukjamesuk on Thursday 10th of February 2011 05:11:22 PM

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ADAS


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Hi James.

You'll need to post a journal

dr capital 55,000
cr suspense 55,000


TB will then be

bank 54000 db
cash 1000 db

capital 55000 cr

I think you've got your debits and credits mixed up on your original journal.

-- Edited by ADAS on Thursday 10th of February 2011 06:55:25 PM

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Tony

Responses are intended as outline only. Formal advice should be sort from your Institutes Technical Department or a suitably qualified Accountant.
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ADAS


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MarkS wrote:


I would have done the following as a journal

Dr Bank 54k
Dr Cash 1k
Cr Capital/Directors Loan 55k.


Hi Mark,

Thanks for this !!

I thought this method would bypass the bank module, like Line 100. It's a much "neater" method than using the O/B



-- Edited by ADAS on Thursday 10th of February 2011 07:25:20 PM

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Tony

Responses are intended as outline only. Formal advice should be sort from your Institutes Technical Department or a suitably qualified Accountant.
.
ukjamesuk


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Thanks all, it was very useful

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