Results 1 to 3 of 3

Thread: 2 Years Back

  1. #1
    Email problem
    Join Date
    Sep 2019
    Location
    Cape Town
    Posts
    1
    Thanks
    0
    Thanked 0 Times in 0 Posts

    2 Years Back

    Hi All,

    So I have to take-on on opening balance for a customer. If I process a customer journal, the customer control account will automatically be affected. I don't want to affect any of my Income statement accounts, as this is a take-on opening balance. Please can someone assist by advising what the contra account for the journal entry would be?

    Regards,
    Nev

  2. #2
    Diamond Member Neville Bailey's Avatar
    Join Date
    Nov 2010
    Location
    Westville, Durban
    Posts
    2,760
    Thanks
    44
    Thanked 451 Times in 396 Posts
    Hi Neviron,

    I assume you are using Pastel?

    It depends on how far back the take-on balance applies.

    If it applies to the current or prior financial year, then the contra account will be one of the Sales accounts in either this year or the prior year.

    If it relates to an earlier date (prior to the beginning of last year), then the contra account would be Retained Income. The problem is that, in Pastel, you can only process as far back as the beginning of the prior financial year.
    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)

  3. #3
    Full Member
    Join Date
    Jul 2019
    Location
    Pretoria
    Posts
    71
    Thanks
    8
    Thanked 9 Times in 9 Posts
    Hi Neviron

    Take-on balances is a very technical subject, so I am glad you have brought it to this forum. I have seen many people rush it, just to sit with an eye-sore in their books forever.

    I agree with Neville's feedback. I do want to strongly advise you to draw out your T-accounts on a piece of paper.

    Your one leg is a customer account, but you say you do not want to affect the income statement on the other leg. What account do you want to affect on the other leg? Your T-accounts will visualise what you would like to achieve as an end result. I have started drawing out the journal you have explained below to show you how you can visualise it. Once you have populated the "Other account??", the "Date >>>" and the Values you can have a much better next step idea.
    Click image for larger version. 

Name:	T-accounts • Make your accounting visual • 2.jpg 
Views:	190 
Size:	17.9 KB 
ID:	7658

    Hope this helps.

    Looking forward to hearing from you.

    Kindest regards,
    Alec Candiotes CA(SA), MCom Taxation
    Last edited by Alec Candiotes; 14-Sep-19 at 02:44 PM.
    Alec Candiotes (CA) SA
    Business Intelligence and Report Automation developer

    www.mybi.co.zaalec@mybi.co.za • 072 997 9553

Similar Threads

  1. Years of not being vat registered..
    By rourke in forum Tax Forum
    Replies: 2
    Last Post: 14-Aug-19, 06:53 PM
  2. How many years to keep old invoices? 5 or 10 years?
    By michellepace in forum Accounting Forum
    Replies: 6
    Last Post: 15-Jul-19, 05:09 PM
  3. Summons After 8 Years
    By Ruan30 in forum General Business Forum
    Replies: 4
    Last Post: 23-Jul-14, 08:23 PM
  4. Alternating tax years
    By BratG in forum Tax Forum
    Replies: 6
    Last Post: 08-Mar-14, 03:01 PM

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •