Home → Help & Support →

Year end balance adjustments

• Edit

richard

15 May, 2014 08:15 AM

Hi

I have a year end balance adjustment journal to apply provided by my accountant (see attached).

Can you explain how this should be entered as I am getting confused about how to specify which accounts should be present as "account 2" and how the splits should work? All the accounts are present, I just need to know how to work the splits?

Thanks.

• Screen_Shot_2014-05-15_at_09.13.11.png 22.1 KB

1. Support Staff 1 Posted by Admin on 16 May, 2014 08:14 AM

   

   Hi Richard,

   Good question. I would tackle it using a dedicated adjustment account. Post two transactions, one for all the credits and a second for all the debits. Here's a step by step and screenshots attached:

   1. First add a new account called Adjustments in the category Unknown.

   2. Add a transaction (so this account is set as Account 1). Set the date as the last day in your financial period and set the Transaction Type to Debit. Work through adding a split for all the credit transactions in your list. So you should have something like screenshot 1.

   3. Add a second transaction like the first. This time set the Transaction Type to Credit and work through adding the debit transactions from your list. You might save time by simply duplicating the first transaction and editing it. You should end up with something like screenshot 2.

   Note the balance left in the new Adjustments account should read zero after both of these transactions have been entered.

   You said you already have the accounts set up. I didn't set them up properly in my screenshots so please excuse me if I didn't put them in the right categories, it's just to show how to enter the transactions by way of a dedicated new account.

   After entering these two (dated the final day in the period) please make sure you use the Consolidate option in the Profit & Loss report. This will lock the previous transactions and return your income and expense account balances to zero ready for this new financial period.

   All the best,

   Mathew

   • Screenshot1.png 329 KB
   • Screenshot2.png 299 KB
   • Edit

2. 2 Posted by richard on 16 May, 2014 10:02 AM

   

   Brilliant! Thanks again.

   Richard

   • Edit

3. Support Staff 3 Posted by Admin on 16 May, 2014 08:23 PM

   

   Since this might be really useful for the rest of the community, would you mind my making the discussion public? It does contain a few figures so I ask first! If you agree I will remove other information such as your email signature, company etc.

   • Edit

4. 4 Posted by richard on 16 May, 2014 10:18 PM

   

   Yes, that's fine. As long as all the data is anonymised.

   Thanks

   Richard

   • Edit

5. Admin closed this discussion on 17 May, 2014 06:55 AM.