Sage Instant Accounts - Opening Balances for Bank Loan

Bracken

I would very much appreciate it if someone could give me some guidance please.

My client tx accounts from excel to sage during 09/10. 5 years ago they took out a buisness loan and I am getting very frustrated with setting up this loan on sage for this financial year. The accountant provided me with the nominal codes to use and nothing else! This is how I in my novice brain am doing it . .

Opening balance for Buisness Loan (Capital Owed at 7th Apr 2010) N/C 2300 = Cr £1959.96

Monthly payments
Dr Buisness Loan £163.33 N/C 2300
Dr Loan Interest £56.29 N/C 7003
Cr Bank £219.62

It all works fine loan is paid off Interest paid registered but I have a suspense account of £1959.96. Which is what is frustrating me because I cant put it in the bank as the money was received 5 years ago and that will throw my bank reconciliations out, and I dont know where else to put it or do I leave it in the suspense till year end? but that seems wrong to me.

How would you suggest I deal with this please so that it will be in her accounts on sage for this financial year ( accountant added it manually last year I believe)
Many thanks for any help

paulstafford

Opening Trial balance

When you transferred their accounts to Sage, did you enter the opening trial Balance?

The £1959.56 credit balance on the loan account n/c 2300 will have been included in this., so you wouldn't have to enter the opening balance on the loan as a separate item.

I assume initially you posted Dr suspense a/c Cr Bank loan account?

Monsoon

If you haven't got opening balances in Sage, your best bet is to post it to suspense and let the accountant deal with it - if you have only got partial opening balances/ brought forward balances then you aren't going to be able to get it right without all the information.

The loan DR would have initially been to the bank but if the bank reconciles then it will be part of the opening balance on the bank. Depending on where sage has put that, might give you a further clue, but suspense might be the best option. I know it's not ideal (but then, if the rest of your bookkeeping is spot on, you have to give the accountant something to do at year end!)

Bracken

thanks Paul yes i transferred the opening balances he gave me but he forgot about the loan. I believe he added it manually last year in his adjustments. I started by putting the opening balance on this loan account like I had done for the previous opening balances last year. It all worked lovely till I saw the suspense account!

Bracken

Thanks Monsoon yes all the other bookkeeping is spot on except for these loan repayments and me being the terribly annoying perfectionist that I am would like it included. The loan has now been repaid so think I'll include a note with the accounts telling him what the payments are etc and as you say give him something to do! Luckily its paid out of a personal account so I can still reconcile all the buisness accounts.

New to this forum thanks to you both for taking time to reply and for your advise