Tag Archives: Opening Balance

Outstanding Credit Note

Software: MoneyWorks #accounting software

In our earlier post, we discussed about how to record the outstanding sales invoices.

If you have a Debtor’s Credit Note outstanding as of the crossover date, you need to record it into the MoneyWorks accounting software too.

Create the Sales Invoice as per normal, that is, using the Setup account for the opening balance; then before saving the transaction, click the Reverse button to reverse the Sales Invoice into Credit Note.

Credit Note

The double entry of the credit note will be debit Setup account and credit the Accounts Receivable account.

 

QuickBooks | Unpresented Cheque

Software: Intuit QuickBooks accounting software

The unpresented Cheques are the cheque issued by you but have not yet appeared in the bank statement as of the crossover date.

When recording the opening balance of the bank account as of the crossover date; you may record the bank statement opening balance and the unpresented cheque separately into QuickBooks instead of a lump sum as of your book balance (Balance Sheet balance).

Bank Statement Balance – Unpresented Cheque + Unpresented Deposit = Book Balance

You may use the Write Cheque function in QuickBooks to record the unpresented cheque.

In the Write Cheque transaction, record the cheque number at the “No” field, and the issue date of the cheque at the “Date” field. The “Opening Balance Equity” account will be used at the Expenses tab. The “Opening Balance Equity” account is a special account which QuickBooks is using it to record all the opening balances, it will be a zero balance if all the opening balances are recorded correctly.

QuickBooks - Unpresented Cheque

The double entry for this unpresented cheque transaction will be:

Debit Opening Balance Equity account

Credit Bank account

QuickBooks | Opening Balance – The outstanding supplier bills

Software: Intuit QuickBooks accounting software

Instead of entering the outstanding supplier bills as a lump sum in the Opening Balance field of the supplier profile, you may record the bills separately. For example, you owe supplier “Permanent Temp Service” 3 bills with a total of $15,000.00 as of your crossover date (usually is the closing date of the last financial year), you may record it as 3 separate bills in the QuickBooks instead of just $15,000.00 as a whole in the Opening Balance field of the supplier profile.

QuickBooks - Outstanding Bills

The Date and Ref Number may follow the original bill so you can make payment accordingly and age the payable correctly.

Under the Expenses tab, you should select the Opening Balance Equity account with a “Non” GST code and enter the outstanding amount in the amount field. The reason for using the “Non” GST code instead of the standard rated GST code is because the GST payable or receivable will be recorded separately via a General Journal according to the Balance Sheet as of the crossover date.

Opening Balance Equity account is a QuickBooks system account which is used to capture the opening balances.