Take on balances

[Mari]

Hi
I need to capture take on balances for a new company. The problem is that the company did not provide a trial balance, but only provided the balances for customers, suppliers, bank and petty cash. I know by only processing these balances it will leave the suspense account with a balance at the end. Any advice as to how I can solve this issue?

[Dave A]

My suggestion is to leave it like that until the rest of the figures arrive.

[LLendrum]

Hi,

My name is Lisa and have just joined the forum.

I have a question and desperately need help.

When I started a new company in Pastel, I ran a trial balance from the previous company and used those balances for the take on balance (opening balances) for the new company, however should I have a take on balance in my balance sheet?

Any guidelines will be so appreciated

Thanks

[MKBHANA]

HI PLEASE CAN U ASSIST I NEED TO TAKE ON BALANCE SHEET FIGURES, HOW DO I GO ABOUT IT.

[dellatjie]

Mkbhana,

In Pastel, you would go to general journal, using the suspense account or an opening balances account and the contra accounts as on the trial balance (for instance motor vehicles at cost).

You have to, however, process your suppliers through a supplier journal, customers through a customer journal, and bank balances through a cashbook. For this reason your journal in the general journal will not balance, it will differ with these figures.

If this method confuses you, you can perhaps first allocate these balances against a seperate account (maybe an account named opening balances), and once your general journal balances, take these opening balances out with a supplier journal, customer journal and cashbook.

Hope this helps..

[Christelle Muller]

Hi, I need assistance too please with cash book take on balance. I do not have any other balances to take on, only the cash book. How do I clear out the suspense account then since it is used to do the take on balance after the posting has taken place?

[Kevin Smith]

The money in the bank can't come from nowhere. It is either a loan from the owners / directors or the company you have taken over from. That money will need to be repaid to them at some stage. You would do a cashbook receipt against the relevant GL account to take on that balance - no need to use the suspense account if there is only one transaction.

[Christelle Muller]

Hi, there will be no other take on balances. Only the cash books. It's a new company. There have been some small movements on the bank accounts.

[Andromeda]

As Kevin Smith said, "The money in the bank can't come from nowhere."
Debit = Credit
Debit Bank Account
Credit ?

[Christelle Muller]

The money in the bank can't come from nowhere. It is either a loan from the owners / directors or the company you have taken over from. That money will need to be repaid to them at some stage. You would do a cashbook receipt against the relevant GL account to take on that balance - no need to use the suspense account if there is only one transaction.

Hi Kevin, it is an NPO we took over. We're also an NPO. I have received their Financial Statements. There are no other balances: no inventory, no creditors, no debtors...only 4 bank accounts. There's no one that needs to be reimbursed. I need to do the usual transactions from 01.07.2023 (new fin year) i.e. supplier and customer invoices to capture. My question is, after watching all the videos that Sage posted on YouTube on take on balances, nowhere is explained how to clear out the suspense account to get it to zero, at year end. Sage support cannot help me with this as Pastel Xpress Accounting is a double-sided entry application. I have also asked our auditors and they explained to offset the supplier pmts and customer receipts against the suspense balances but how do I then get to post allocations to the GLs and at the same time get the bank balances as at today's date? If there are no other balances to take on, other than the 4 bank account balances, how go about it? Sounds like I'm making it very complicated but I'm stuck here. I'm sure there's a way that I'm not yet aware of...

[Kevin Smith]

If you look at the financials, there must be something with credit balances that offset the debit balances in the bank. In a for-profit organisation this would normally be Retained earnings. I think in NPO accounting terms it is called Net Assets. If you have nothing else to go on, rename 5200/000 Retained Earnings to Net Assets and post your contra's to the cashbook there.

Net Assets is the cumulative excess or deficiency of an NPO's income and expenses from the beginning of the organisation to present.

[Christelle Muller]

If you look at the financials, there must be something with credit balances that offset the debit balances in the bank. In a for-profit organisation this would normally be Retained earnings. I think in NPO accounting terms it is called Net Assets. If you have nothing else to go on, rename 5200/000 Retained Earnings to Net Assets and post your contra's to the cashbook there. Net Assets is the cumulative excess or deficiency of an NPO's income and expenses from the beginning of the organisation to present.

Ok thank you, this makes more sense to me.