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Entering Opening Balances

  • Applicant
  • 5 posts
  • # 76097

Hi,

I'm hoping someone can help me.

I'm trying to complete a mock exam for my level 2 computerised bookkeeping, i've got to enter opening balances with journals for capital a/c, bank a/c etc.

I've very confused as my texts books are very vauge and i've not needed to do this in any of my assignments.

Can anyone point me in the right direction, as i'm unable to contact my tutor till tomorrow and i'm getting frustrated!!


Thanks

Jenny
  • 60 posts
  • # 76100

What Computer Programme are you using?
  • Applicant
  • 5 posts
  • # 76101

I'm using Sage.
  • Member PM.Dip
  • Practice Licence
  • 107 posts
  • # 76106

Hi Jenny
If you open the nominal ledger and click on the account you need eg Capital, there is a box with OB where it says balance.  Click this and enter the balance in the window that pops up.
Hope this helps
Linx
Infinite
  • 82 posts
  • # 76108

linx_psaid:

“Hi Jenny
If you open the nominal ledger and click on the account you need eg Capital, there is a box with OB where it says balance.  Click this and enter the balance in the window that pops up.
Hope this helps
Linx”
Hi Jenny

When doing this, keep an eye on your suspense account.  

If you are provided with a trial balance, use the journal function as both sides (of the tb) should equal.  From memory, the Journal button should be in the Company window.

Let us know how you get on.
  • Applicant
  • 5 posts
  • # 76145

I'm still very confused. My tutor is not being very helpful.

I've read the lesson on journals again, but there is nothing about opening balances. Its using payroll journals as an example but i don't know how to adapt this to enter opening balances

Jenny
Infinite
  • 82 posts
  • # 76147

Hi Jenny

A quick question: have you been supplied with anything that resembles a trial balance?  

If so, you would open the journal and enter the amounts as per the trial balance (i.e. Capital = Credit side; Bank = Debit side (unless overdrawn)) ensuring both sides have the same total.  Sage will not post the amounts unless both sides have the same value.

Let me know if this helps and I'll keep fingers crossed! 
KerryB
  • 269 posts
  • # 76148

Honeybunysaid:

“I'm still very confused. My tutor is not being very helpful.

I've read the lesson on journals again, but there is nothing about opening balances. Its using payroll journals as an example but i don't know how to adapt this to enter opening balances

Jenny”

Hi Jenny,

You open the journal window and complete for example,

Ref; Opening balances date 31/10/2011

CR Nominal 3100 Capital £50000
DR Nominal 0020 Plant & Machinery £20000
DR Nominal 0030 Motor vehicle £20000
DR Nominal 1200 Bank £10000

As you will see from the above, the total CR is equal to the total DR. This is just a basic example, but so long as you get the DR & CR's the correct way round the this will work perfectly. If there is a difference then Sage will not let you post the journal (I believe). 

The opening DR and CR balances will be equal (in effect they are the TB which should always balance)

Hope this helps.

Kind regards

Kerry

EDIT: bad spelling - 'I' before the 'E' except after 'C' (although this statement is not really true!)

Edited at 07 Nov 2011 07:01 PM GMT

  • www.berrybookkeeping.co.uk

    My responses are based on my opinions, not necessarily facts.

  • Quote
  • Applicant
  • 5 posts
  • # 76149

OMG! Thankyou Kerry

Everything has just clicked!


Thank you so much

Jenny :)
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