What happens with 9990/000 Opening Balances at Financial Year End

[Brendon]

Good Day

I recently took over the books for a company from another Bookkeeper, and now need to do the End of Year process for FY2022, and opening balances for FY2023.

The bookkeeper captured the opening balances to the following "Opening Balance / Suspense Accounts"

9990/001 - Opening Balance - General Journal
9990/002 - Opening Balance - Customers
9990/003 - Opening Balance - Suppliers

Obviously there has been no movement in these accounts throughout the year, so I now have a combined Debit balance of R 1,700,000.00 sitting between the Customer and Supplier Opening Balance accounts.

How do I process these, as the balances are not applicable, and should not be brought into the new Financial Year.

If you require any further information or detail, please let me know.

Regards
Brendon

[Andromeda]

Hi Brendon

It seems the Pastel chaps are not willing to help.

Those entries are a summation of what was to happen the income statement etc. I presume that the balances should be set off against Retained Income.

If they belong elsewhere, besides you hair falling out, you have a big problem.

Have you spoken to your Accounting Professionals?

[Neville Bailey]

Sorry, this Pastel chap has been preoccupied elsewhere!

Normally, those Opening Balance/Suspense accounts are used to take on opening balances from another system, and they should contra one another out, as the opening balances should be taken from a balanced Trial Balance. If they are not cancelling one another out, then (as Andromeda said), you have a big problem.

The problem, then, is not a Pastel problem, but an accounting/bookkeeping problem.

[Andromeda]

[Brendon]

Sorry, this Pastel chap has been preoccupied elsewhere!

Normally, those Opening Balance/Suspense accounts are used to take on opening balances from another system, and they should contra one another out, as the opening balances should be taken from a balanced Trial Balance. If they are not cancelling one another out, then (as Andromeda said), you have a big problem.

The problem, then, is not a Pastel problem, but an accounting/bookkeeping problem.

Thank you Neville and Andromedafor your responses.

It is indeed an Accounting problem and not a Pastel problem, and a big one at that.

I have worked out I need to go back 2 years to where the Balances were brought forward incorrectly in the first place, which has now just come forward year on year. I am re-processing from the point of error in FY2021, to fix b/f balances for FY2022, and then FY2023.

Once again, thank you for your feedback.


Regards
Brendon