I've recently taken over the bookkeeping for a ltd company and had a trial balance from the old bookkeeper so I could enter my opening balances
The debtors control account had a debit balance of £35379.98.
I know to make it balance I now need to enter opening balances to the customer accounts but which nominal code do I enter them to? Also what happens regarding the vat, do I need to enter the vat amount or not as its already included in the opening balances?
Assuming you are not cash accounting for VAT? - Enter the opening balances in to the Customer Accounts using nominal code 9998 Tax code T9. Run the Aged Debt report and make sure it balances to the total amount owed - enter the opening trial balance and then enter the debtors control total to nominal code 9998.
(As I am a newbie you might just want to get Michelle to confirm that the above is correct) :@)
The picture attached might help to explain further.
-- Edited by Elspethaq4b on Friday 17th of January 2014 05:04:51 PM
Enter your opening balances, posting the debtors figure to a temporary code. I actually use sundry debtors 1101 and sundry creditors 2101 (as you probably need to do this process for both, and this keeps it separate).
You then use your debtors(creditors) breakdown to enter invoices.
If you are on standard accounting, you enter these as T9 to code 1101/2101
If you are on cash accounting, enter them as T1 to 1101/2101. Once you have posted everything on, you should find that 1101/2101 is out by the VAT on these invoices. You then journal the VAT amount from 2200/2201 to 1101/2101
Hope this makes sense but do post again if you are unsure
