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Negative Balances

miskysbabemiskysbabe Settling In NicelyRegistered Posts: 25
I have to go through and code up the negative balances on the debtors and creditors. Does anyone have any advice on this?


  • T.C.T.C. Experienced Mentor Registered, Tutor Posts: 1,448
    Why would you have negative balances?
  • Gem7321Gem7321 Experienced Mentor DevonMAAT, AAT Licensed Accountant Posts: 1,438
    Do you pay/are you paid on proforma? This would create negative balances but I'm not sure what you mean by 'code up'
  • Hasan.AhmetHasan.Ahmet Feels At Home Registered Posts: 87
    Negative balances can occur in debtors or creditors accounts for example if payments are made in advance or on account or duplicated payments made/received.
    These balances would make no difference as far as the control accounts are concerned and it is the balances of the control accounts that go into balance sheet.
    If the sums are material for balance sheet then you would do a journal to account for the negative balances by increasing debtors and/or creditors accordingly.
    Best regards
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