Auditor year end journal help!!!!

[crobbertse123@gmail.com]

Hi there
Our auditors have given me a journal to process, and before I ask them, I'd like to see if I can get help somewhere else.
This is how it goes:

Debtors with credit balances 8000/002 264879.75dr
Debtors with credit balances 9000/030 264879.75cr
I don't have these codes in my general ledger. Do I create them?

[Krono9]

It appears as if they are writing a journal between one of your customer and supplier accounts. Typically audit firms use software such as Caseware, and I suspect in your example created their own accounts as you cannot post a journal to a specific customer or supplier on Caseware. You have to find out to which customer and supplier exactly you have to post the above journal entry and post accordingly. 8000 is typically your customer control account and 9000 your supplier control account.

Hope that helps.

[crobbertse123@gmail.com]

Thank you, it really does help

[mawirepower]

Hi, That journal is what is known as a Reclassifying Journal. The journal moves negative Debtors balance to Suppliers balance. These type of journals only affect the presentation of financial statements and not your ledger. You must not process these journals in your day to day accounting system. Only the system being used to produce Financial Statements needs to be updated.

[Hilda]

Hello. They are for financial statement disclosure purposes only. No need to process them.

[Kenton Smith]

Hi there, if you use Pastel as your accounting software, it has a 13th period for postings during this difficult financial year-end time. The benefit of this is that you will not need any of these journals, as you will be able to roll-over a month later, but still in the same period. This 13th period in Pastel will then become your 1st period in the next financial year, without any "fix-up" journals. My advice is to stay away from journals as much as possible, they always create questions and issues further down the line.