Hi, I am working on Pastel Express and need to load opening balances (Debtors & Creditors) as well as all my General ledger accounts. It is a new set of books that I have just created and I just need some advice. Thanks
Hi, I am working on Pastel Express and need to load opening balances (Debtors & Creditors) as well as all my General ledger accounts. It is a new set of books that I have just created and I just need some advice. Thanks
If you need to take on the opening balances of an existing business, you will need to have the following minimum information on hand - a trial balance (from your previous accounting system), a list of debtors and a list of creditors.
Here is an example of how to take on opening balances.
Let's assume that the trial balance is as follows:
Debit CreditSales 100,000.00Expenses 75,000.00Retained Income 50,000.00Capital 50,000.00Long Term Liabilities 200,000.00Fixed Assets 300,000.00Bank 20,000.00Trade Debtors 20,000.00Trade Creditors 15,000.00TOTAL 415,000.00 415,000.00
You will notice that the total of the Debits is equal to the total of the Credits - that is important!
Now, assume that the breakdown of your Trade debtors is as follows:
Customer A - R15,000 Dr
Customer B - R5,000 Dr
And your Trade creditors is made up of:
Supplier A - R7,000 Cr
Supplier B - R8,000 Cr
You would create the following Opening Balance accounts in your new system:
- 9990/000 Opening balance account - Main account
- 9990/001 Opening balance account - General Ledger
- 9990/002 Opening balance account - Customers
- 9990/003 Opening balance account - Suppliers
- 9990/004 Opening balance account - Bank
Your journals would be as follows:
General journal:
Debit Credit9990/001 100,000.00Sales 100,000.00Expenses 75,000.009990/001 75,000.009990/001 50,000.00Retained Income 50,000.009990/001 50,000.00Capital 50,000.009990/001 200,000.00Long Term Liabilities 200,000.00Fixed Assets 300,000.009990/001 300,000.00
Customer journal:
Debit CreditCustomer A 15,000.009990/002 15,000.00Customer B 5,000.009990/002 5,000.00
Supplier journal:
Debit Credit9990/003 7,000.00Supplier A 7,000.009990/003 8,000.00Supplier B 8,000.00
Cashbook Receipts journal:
Allocate R20,000 to 9990/004
If you look at the resulting balances for each of the 9990 sub-accounts, they will be as follows:
9990/001 - R25,000 Dr
9990/002 - R20,000 Cr
9990/003 - R15,000 Dr
9990/004 - R20,000 Cr
However, the net balance on the main account 9990/000 is zero - this will confirm that you have captured the opening balances correctly.
Neville Bailey - Sage Pastel Accounting Consultant
www.accountingsoftwaresupport.co.za
neville@accountingsoftwaresupport.co.za
IronTree Online Solutions
"Give every person more in use value than you take from them in cash value."
WALLACE WATTLES (1860-1911)
Newretailer (09-Sep-14)
Thank you Thank you................... THANK YOU THANK YOU THANK YOU WOW!!!!!!!!!!!!!!!!!!!! that really got me out of a messy situation. Thanks Mr Bailey
My name is Thato I work as finance and admin assistant. I have just captured the opening balances for a new company so i have suspense, please help,
Neville Bailey - Sage Pastel Accounting Consultant
www.accountingsoftwaresupport.co.za
neville@accountingsoftwaresupport.co.za
IronTree Online Solutions
"Give every person more in use value than you take from them in cash value."
WALLACE WATTLES (1860-1911)
I forgot to mention that, if your opening balances are the closing balances for the previous financial year, then you need to process each of the above journals as Last Year journals, so that they reflect as opening balances for the current financial year.
For example, if the new financial year starts on 1 March 2011, and you have closing balances as at 28 February 2011 that you want to take on, then open each journal, go to the Settings button at the bottom, and untick the box named "This Year Transactions", then click on Close. You will then see the words "Last Year" in red at the bottom of the journal. Now, select period 12 of last year, and capture the entries there.
Neville Bailey - Sage Pastel Accounting Consultant
www.accountingsoftwaresupport.co.za
neville@accountingsoftwaresupport.co.za
IronTree Online Solutions
"Give every person more in use value than you take from them in cash value."
WALLACE WATTLES (1860-1911)
I cannot thank you enough for the prompt and clear advise, it is exactly what I was looking for.
Neville Bailey - Sage Pastel Accounting Consultant
www.accountingsoftwaresupport.co.za
neville@accountingsoftwaresupport.co.za
IronTree Online Solutions
"Give every person more in use value than you take from them in cash value."
WALLACE WATTLES (1860-1911)
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