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Trial Balance won't balance
My Trial Balance and Balance Sheet are out by exactly the same amount as my opening trade debtors balance.
When I enter the opening balance for trade debtors as a positive amount (which I think is correct), my TB is out by -£300 and BS out by +£300. When I enter the opening balance as a negative amount, the reverse is true.
Any ideas?
When I enter the opening balance for trade debtors as a positive amount (which I think is correct), my TB is out by -£300 and BS out by +£300. When I enter the opening balance as a negative amount, the reverse is true.
Any ideas?
I’m a bit confused by these hardcore accounting concepts
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Inappropriate?James,
Sorry for the confusion - we're using the opposite sign to mean the same thing on each of those screens. We'll fix that.
Suffice it to say, there needs to be other entries in the opening balances to make the accounts - er - balance.
Typically this might be opening bank balances or retained profit. Your accountant would be able to advise.
If it's as simple as some outstanding bills at the start of the year, it'll be an equal and opposite amount in the retained profit account (invoiced sales from last year). -
Inappropriate?OK, that's helpful. Thanks.
Looks like I need a chat with my accountant to get me set up properly right from the start.
Cheers
I’m looking forward to getting up to speed
EMPLOYEE
