Opening Balances Help!

ACCOUNTHELP

Good Morning,

Can someone please help me. I am entering our opening balances into sage and am confused. Our accounts has said 'If you have already closed down 31.12.16 on sage then all postings to P&L codes should be posted to P&L reserve 3200'. Can someone please just confirm for me what this means, and to which codes they are referring!

Thank you in advance!

Bertie

From memory of Sage Desktop; a year-end roll up lumps all necessary figures in the 3200 account.

For opening balances.

If you journal each account into the suspense account after you've entered the final nominal your new TB should mirror the closing one of the last period.

For instance Dr Asset Cr suspense Cr Deferred income Dr suspense.

And so on.

When it comes to debtors and creditors; I prefer to enter each individual outstanding invoice, than as an oppose to entering the SLCA, PLCA figure as this can lead to double counting if it's not reversed properly.

A notable point is one surrounding VAT.

If outstanding invoice X formed part of the last VAT return you'll want to enter this gross without it hitting the new VAT return.

Is this for an exam or for business?

If it's for business you'll want comprehensive reports from the last day of reporting. Debtors and creditors reports. VAT report, reconciled items. A bank reconciliation as at the last date will be useful. TB, fixed asset schedules, HP etc etc.

Take regular back-ups too.

Hope I've understood the question.

ACCOUNTHELP

Hi, thank you for your reply,

The accountant has produced the figures ( credits/debits) for me to perform already.

However i have closed off the year end, so i do not understand which credits/debits within their produced list they are referring too..

Do they mean any nominal codes within the journals that refer to any nominal which would be within the P&L
( i.e 4000-4999 sales and other income
5000-5999 purchases
6000-6099 direct labour and direct costs
6100-6999 marketing and miscellaneous
7000 -7999 overheads)

Thanks.

Bertie

So do you have a nominal code followed by a figure?

If this is a new financial year for the business / company I'd expect to only see balance sheet accounts.

ACCOUNTHELP

i believe they are corrections to nominal code placement for last year, as part of the year end analysis.

e.g

Dr Legal & professional 5968.0 7604
Dr Accountancy 1,750.00 7602
Cr Trade creditors 6,020 2100
Dr VAT Control account 1,870.00 2201
Cr Accruals 1,584.00 2109

i have changed the figures slightly so they will not total.

Bertie

Hi,

You'll need to find out what is making up the creditors and accruals figures together with any VAT elements.

Have you rounded those figures or completely changed them?