Category Archives: Intuit QuickBooks 2014

How to record a returned cheque in QuickBooks?

Software: Intuit QuickBooks Premier 2015 accounting software

Unlike the Accounts Receivable module, Accounts Payable module does not have a “Record Bounced Cheque” feature. To record a returned cheque, which has issued to a vendor, a General Journal is needed.

You may consider using a Void Cheque feature, but if the cheque is returned at a different financial period, then General Journal is still a better choice; so the bank reconciliation will not be affected.

Debit the Bank account and credit the Accounts Payable account to reverse the cheque payment.

If you had recorded the cheque payment via a Write Cheque feature instead of a Pay Bills, then the double entry of the journal should be debiting the Bank account and credit the respective expenses account.

How to manually record an exchange gain in QuickBooks?

Software: Intuit QuickBooks accounting software

If you are adjusting the home currency value of a foreign currency account, you need to check the “Home Currency Adjustment” checkbox in the General Journal transaction. Home currency amount will be recorded in the General Journal instead of a foreign currency value.

Assuming you have a USD bank account (foreign currency) of US$81,055.00 at a home currency value of SG$114,147.50; and you need to record an exchange gain of SG$500 (The Adjusted amount should be SG$114,647.50).

From the Company menu, select “Make General Journal Entries” to create a new general journal. Check the “Home Currency Adjustment” checkbox; debit the “USD Bank” account 500.00 and credit the “Exchange Gain/Loss” account 500.00.

Home Currency Adjustment Journal

From the “USD Bank” account register, you will find that the “home currency adjustment” general journal recorded 0.00 value as it is just an adjustment to the home currency and not affecting the foreign currency value.

Bank Register

How to record the opening balance of a bank account in QuickBooks accounting software?

Software: Intuit QuickBooks accounting software

In our earlier post, QuickBooks | Unpresented Cheque, we discussed whether to record the “GL balance” or the “actual bank balance” as the opening balance of the bank account in the QuickBooks accounting software.

There are many methods to record the opening balance of the bank account in Quickbooks.

When creating a bank account in QuickBooks, you can record the opening balance of the bank by clicking the “Entering Opening Balance” button and record the opening balance in the pop-up window.

Opening balance of the bank

However, if you have created a bank account and start recording the transactions without setting up the opening balance initially, you need to record the opening balance of the bank account via either a “Make Deposits” or a “Journal” method.

For the “Make Deposits” method, you select the relevant bank account at the “Deposit To” field and use the “Opening Balance Equity” account in the “From Account” field to record the opening balance of the bank account. The “Make Deposits” entry will debit the “Bank” account and credit the “Opening Balance Equity” account. To a layman, using the “Make Deposits” method is an easier method to record the opening balance of the bank account.

If you prefer a “Journal” method, then pass a journal to debit the Bank and credit the “Opening Balance Equity” account.