I need some help! I am using sage instant accounts and i opened a new nomincal account 2301 for a loan account and i needed to enter an opening balance which i did but have noticed that it has also posted the same amount into the suspense account which now also shows on the profit and loss under suspense. can someone explain why it has chosen to also show it in suspense? i suspect this is to do with double entry but i cant see how it will be removed from suspense as any payments made to reduce the loan account will be posted to 2301. help greatly appreciated.
Hi if you paid the loan in to your bank then you need to
DR Your bank account with what ever the amount of loan you had and CR the loan account with the same amount
If you did it by Journal then you need to reverse it
Or you could do a journal DR Bank CR suspense. And put details as missposting
Martyn
Ps it has gone in to your suspense account as when you put your opening balance in as a CR it had no where to DR it to so used the suspense account as the DR side of the transaction
-- Edited by nautica on Monday 21st of March 2011 02:49:21 PM
-- Edited by nautica on Monday 21st of March 2011 08:39:14 PM
-- Edited by nautica on Monday 21st of March 2011 09:25:45 PM
I didnt post it through through the bank at all. i opened a new nomincal code 2301 and whilst completing the details of the new code i entered in the opening balance section of the set up the amount?
Given you have posted as an opening balance the double entry nature of accounts means a Dr needs to be posted somewhere else (or otherwise the trial balance wouldnt balance) and this is why an automatic Dr has been posted to the suspense account.
If you hadnt posted as an opening balance you would have Dr ????? Cr Loan. The question is what would you have Debited.
You would need to Dr this account and Cr suspense to correctly incorporate
Opening balances should only be used when setting up the accounting system when you have a balancing set of figures (opening balance sheet) to enter. If you are opeing a nominal account when the system is already set up it can't by definition be an opening balance. You will not have a proper audit trail of where this transaction originated. Not sure if you can just remove the opening balance from the account I think you will need to post a journal as previously suggested.
