Opening balances

[MWilson]

Hi there

I am helping someone carry over their processing to Pastel. They have been doing their accounting manually for 10 years. They have no TB at the moment and I am struggling to figure out how I am going to post the supplier, cash book and inventory opening balances to ensure that it all balances out at the end. Do I wait until her accountants can produce the financial statements for end Feb? That will take a while. Do we start processing in March and worry about opening balances when we have a TB?

Any advice will be appreciated.
Thank you.

[Kevin Smith]

Create an opening balance/suspense account eg 9980/000 (Balance sheet). Create 4 sub accounts 9980/005 10 15 20 etc. for Debtors Creditors Inventory and Bank Suspense. Process the journals for each set and use the suspense accounts as the contra, eg Debtors Journal - Dr Customer1 Cr Debtors Suspense. Inventory Journals - put items into stock and use the suspense as the contra. Cashbooks, do a receipt or payment (depending on whether positive balances or overdraft) for each account using suspense as the contra.

When it is time to raise the full TB, you will use the suspense accounts when you get to debtors, creditors, inventory and cashbook controls. This would clear the suspense accounts.

[MWilson]

Thank you!!

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