The Book-keepers Forum (BKF)

Post Info TOPIC: Creating opening balances / journal entries


Master Book-keeper

Status: Offline
Posts: 8646
Date:
Creating opening balances / journal entries
Permalink Closed


Hello

I have just taken on a new client that HAS to use the cloud based E-conomics accounting software (its a franchised business so they insist!)

He has a limited company that was incorporated 3 years ago that does about 4 invoices in/out a month and completes VAT returns.  He is using this same company for his new venture but wants to keep the books separate, so he completed the last VAT return with both 'divisions' and did one VAT return and will split the VAT refund/payments between the two divisions idc.

So the last VAT return includes about 20 payments relating to his new venture. I have no invoices for most of these and they havent gone through the new Venture Bank account, so thought the best way to deal with it would be to enter 'opening balances' for the items already paid and his Accountant can sort this and the merger at the end of the financial year.

BUT - E-conomics doesnt appear to have an opening balance funtion, only Journals and this is where I came unstuck as Im used to the ease of using Sage.

CAN YOU HELP?  

I need to create opening balances for the following eg using debits and credits:-

1) Franchise fees    (2) Stationery purchase           (3) fixtures and fittings               (4) Unform purchase

HOW do I do the debits/credits  - I ONLY have PURCHASE invoices

eg

1) know for expenses to DEBIT the NET eg stationery n/code 7500  - BUT WHERE DO I Credit?

2) Fixed Assets - DEBIT net to Franchise fee N/code 1060?  Credit where?

3) Debit (??) VAT element of all these invoices to 2202?  Credit where?

4) When VAT is refunded I will need to debit Bank and Credit 2202?

------------------------

To further complicate matters two of the purchase invoices have been paid through the new Venture Bank account so can you advise how I process these.

 

Please please can someone help me with a very simple, idiot proof guide.  Oh dear - its Friday again!!!!!!!!!

 

Thanks in advance

Chesh



__________________

 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position

Page 1 of 1  sorted by
 
Quick Reply

Please log in to post quick replies.

Tweet this page Post to Digg Post to Del.icio.us
Members Login
Username 
 
Password 
    Remember Me  
©2007-2024 The Book-keepers Forum (BKF). All Rights Reserved. The Book-keepers Forum (BKF) is a trading division of Bookcert Ltd. Registered in England Company Number 05782923. 2 Laurel House, 1 Station Rd, Worle, Weston-super-Mare, North Somerset, BS22 6AR, United Kingdom. The Book-keepers Forum and BKF are trademarks of Bookcert Ltd. This forum is a discussion forum only. There will usually be more than one opinion to any question and any posting should not be viewed as a definitive solution. No responsibility for loss occasioned to any person acting or refraining from action as a result of any posting on this site is accepted by the contributors or The Book-keepers Forum. In all cases, appropriate professional advice should be sought before making a decision. We reserve the right to remove any postings which are offensive, libellous, self-promoting or engaged in covert marketing. We will not notify users of removals. The views expressed in the forum posts are those of the individual and do not necessary reflect or agree with those of The Book-keepers Forum. Any offensive or unsuitable posts will be removed by the moderators. Any reader of this forum can request for a post to be looked into by sending an email to: bookcertltd@gmail.com.

Privacy & Cookie Policy  About