Recently I have been sent a list of codes and been asked which balances I want to roll forward and which ones I do not.
Some are BS codes and others are P&L codes.
The norm for the BS codes is that they will be rolled forward unless otherwise instructed....this makes sense to me as the BS is a statement of position and balances normally get carried forward.
On the P&L the norm is that they are not rolled forward unless otherwise instructed. This also makes sense to me as the P&L is a Performance statement and everything gets taken to BS reserves at the end of a financial year.
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The majority of the balances are for individual allowances granted to budget holders like mini bank accounts for them to spend as they wish....
What would the double entry be on the BS to prevent an account from rolling forward?
AND
What would the double entry be on the P&L to carry forward a balance in the new year?
You will find your answers in Chapter 25 but as you seem to be having some fundamental issues it might be a good idea to quickly review back from the beginning.
Also, what do you mean by normally brought forwards on the B/S and normally not brought forwards on the P&L. Can I assume that the field giving you issue are around inventory or are there other fields that are causing you issue?
With bookkeeping you need to have confidence in what you are doing and questions as wide as this one would indicate that you are still having some fundamental conceptual issues that need to be resolved.
Simply working out how to do things is just shawing up holes in a leaky ship. You need to understand not just how but more importantly why you are doing things so it may be better to take one step back in order to go forwards three.
Sorry that this one is not a direct answer but I fear that the level of the question warrants a different sort of response to normal.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
I have read up on some guidance around this area and I know now what I need to do.
I'm a little rusty on some of the basics as I haven't had to use some of my skills for a while however, when something is explained/documented in way that makes sense then I'm usually pretty quick on the uptake due to my background. Essentially what I needed to do was bring forward the creditor balances on the balance sheet. I had to ensure the P&L items from the prior year were recorded accurately so that any b/f creditor balances for the new financial year were correct.
It's starting to come back to me now but thanks for the link.
