OK - I humbly confess that this issue has left me scars, including my boss yelling at me, so I am hereby going behind his back to search for help from my friends here. The numbers I will put here are fictional, for simplicity's sake. Here we go:
In January of 2011, my company's directors provided direct funding, by foregoing their salaries and expense reimbursements. The amount was 300. So I created an equity account in 2011 and offset that with a suspense account in the P&L until I had time to breakdown all the natural codes for the transactions. So far so good.
It then emerged that 80 of the 300 pertained to 2010. So I, innocently, broke down 80 worth of different types of expenses and debited those accounts to 2010 with a credit to the same suspense account. This, however, created a credit balance on the suspense account, and made the P&L entry net to zero. I went to my boss, who yelled and screamed and told me to instead credit an accrual account in 2010 for the 80.
Along come the auditors and tell me to move this from accruals to a loan account.
Here is the result:
1) 2010 has the correct Loan balance and the correct P&L impact
2) 2011 has the correct equity impact (the original 350). However (drum roll):
3) 2010 has an incorrect P&L impact of the original 300. In other words (and I admit I must be missing something here) I have 80 hitting 2010, but still have the original 300 in 2011 (in the suspense account)
