I'm currently studying bookkeeping and recently failed a module - I passed 9 out of 10 so it's not all bad. However I have a question about entering opening nominal balances and where they should go as I lost a few marks.
I had worked out the nominal balance for the end of the previous financial year and was putting them into sage using the journal. However one amount was a prepayment of rent for the 1st month of the next financial year. So in the journal should I record it as a prepayment n/c 1103 or post it under n/c 7100? Initially I thought it would be a prepayment under 1103 as when I am entering it technically it is in the previous financial year, then when starting to work on the next financial year I should remove the amount as a CR from 1103 and enter it as a DR under 7100 so it would show as an expense? Or have I got that completely wrong?
