I have entered some opening balances into the customers accounts, however I now seem to have 3 entries!!!
It is showing in my Debtors Control account, it is showing in the customers account but also showing in the suspense account, can someone please help me as to what I need to do to correct this?
It ought to be the case that it shows in both the customer's own account and the Debtors' Control account. The purpose of the Debtors' Control Account is to summarise all the company / trader's debtors in one place, so you can see at a glance how much is owed to the company. In bookkeeping computer programs like Sage the total balance in the Debtors' Control A/c appears on a trial balance or on the balance sheet, whereas the personal accounts of the individual customers do not.
However it should not be showing up in the suspense account. The only thing I can think of is that perhaps there is an error in the way you have set up this customer's personal account in Sage or a similar program, so that the program is not automatically crediting Sales and debiting the Debtors' Control A/c as it should.
Hope this helps, but I'm one of the amateurs on this forum, so hopefully someone else will be able to add more.
-- Edited by chatcat on Monday 30th of July 2012 06:59:53 PM
-- Edited by chatcat on Monday 30th of July 2012 07:02:33 PM
Did you enter the customer opening balance via the O/B button on the customer's account? If so, this is why you have an entry in the Suspense account. If you enter the Opening Balances this way then Sage makes two entries as far as the Trial Balance is concerned, one in the Debtors' Control account and the other to the Suspense account. And of course you have the Invoice(s) in the Customers' accounts.
I would only use the Opening Balance button if you are subsequently going on to enter a full Opening Trial Balance. After entering this and then reversing out the customer opening balances on the debtors control account and the suspense account (otherwise you would have duplicate entries) your suspense account will be zero.
Are you planning on entering a full Trial Balance later?
Pauline
P.S. Sorry, assuming you are using Sage?
-- Edited by Stardoe on Monday 30th of July 2012 09:42:40 PM
CORRECTION ADDED LATER: I've just remembered from my Sage course that Sage DID deal with opening balances for both Customers and Suppliers by doing a double entry on the suspense account. And I asked why and got an explanation but I can't remember what it was!
So I am just going to have to add my voice to yours in asking the question. Sorry not to be able to give a clearer answer.
Incidentally, I can't seem to edit posts I have written at the moment. If I try to, a message shows up on the original post saying I have edited it but the text of the post is unchanged. At least, that's what I am seeing on my computer screen.
