Opening Balances in Sage

katsutlieff
katsutlieff Registered Posts: 459
I am transferring all our paper accounts onto Sage. I have the end of year accounts from the accountant for the year ending 2008. My opening balances for year ending 2009 are made up of

Capital
Cash
Plant and Machinery
Plant and Machinery dep
Motor vehicles
motor vehicles dep

prepayment of insurance
accurals of accountancy fees

These figures balance, which is wonderful when you manage it in the real world for the first time.

Now I am confusing myself with the posting of the prepayment and accurals. I was going to post the accrual to the accruals account and make the debit entry for Jan 2009 when it was paid.

How would I deal with the Prepayment as an opening balance? Would it be a debit entry in Insurance, reducing the amount each month

Hope this makes sense, I have been away from my books for too long, should have taken them on holiday :001_unsure:

Comments

  • katsutlieff
    katsutlieff Registered Posts: 459
    Think I have finally got my head around this.
    I would place the opening balance in the prepayment account, and then transfer to the Insurance account.

    I was confusing myself by then thinking I needed to do something the Insurance account monthly, but as I see it it sits there, as it is the expense for the year. The process is repeated the following year.

    Trying to see something that isn't there :001_rolleyes:
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