I really hope someone can help with this..I am doing a temp job at a registered charity who is also a company limited by guarantee. I am concerned about the opening balances, they appear in the income section, surely this isn't right? I think it's probably due to funding carried over to the next financial year but surely this should appear in the accumulated funds section? Also some expense accounts have brought forward balances show as journals to account for prepayments and accruals. Any help with this would be gratefully received as I am slowly going grey!!!
Hi Chris, yes some of them are, mostly the ones on the expense nominals. Th income nominal s are deferred income, I think.
some of these opening balances have been entered after the previous year's year end has been run but the amounts input are still dated the year end date.
I am really confused with this as I have never seen this before.
I have seen it where I worked once, although it wasnt a charity. Basically, the monthly accounts were done on a spreadsheet, and any accruals etc were entered on that. However, at year end ,the final prepayments/accruals were entered on Sage before close down, and reversed when the year end had ran. In a bit of a rush now, Ill try and remember why today!
Thanks for your help, I really appreciate it. Looking at the previous years sage nominal accounts - the year 2011 year end has been processed but there are entries that have been input dated 31 Dec 2011 - some are journals for prepayments and accruals, others are corrections, but after the year end? Am totally confused.
-- Edited by Samalixo on Wednesday 10th of July 2013 05:24:17 PM
Apparently these entries were done by a member of the management committee but has left! I think the accountant will have to come in and sort this out!
