[Question] Adjusting journal entries from 2 years ago - Pastel Partner

[Kerryn27]

Can anyone suggest the best way to enter adjusting journal entries from the 2015 FY when my current Pastel file only goes back to the 2016 FY?

[Neville Bailey]

Just to clarify, your current Pastel company's year-end runs from 1 March 2016 to 28 February 2017 and you have access to the prior year, running from 1 March 2015 to 28 February 2016? And you want to process entries for the year ending 28 February 2015?

If this is correct, then I suggest that you process all Balance Sheet related entries, as Last Year entries, dated 1 March 2015, in the retrospective Balance Sheet GL accounts, and all Income Statement related entries, as Last Year entries, dated 1 March 2015, against the Retained Income GL account.

The above will distort the figures for March 2015, as the entries should technically be included in the opening balance as at 1 March 2015, rather than in March 2015, but the cumulative figures as at February 2016 and February 2017 will be correct.

[Kerryn27]

Thank you. That's exactly what I now intend doing. Just needed clarification

[Kerryn27]

Ok, just checking ... does this look correct?