How to clear Customer and Supplier Balances after selling the business
Hello All
I need some assistance in clearing customer & supplier balances after an entity of ours was sold (divested) to another business. (I work in the NFP sector and the business did not cease trading altogether, it was divested to another business who took it over the next day)
The business ceased trading under our control on 30 June 2021, as of 1 July 2021 i processed a journal to record the sale (divestment) which was basically the net assets as of 30 June 2021 so the balance sheet trades debtors & creditors GL was cleared and moved to Retained Earnings.
The net assets were transferred to the new business as thus these accounts were paid and monies collected by the new business.
Fast forward a year to 1 July 2022, I need to continue using the same MYOB file as we have accumlated another business, however the balances sitting on the Receivables & Payables Reconciliation Reports are still there ( i have attached a report)
How do I clear these without affecting any GL accounts so the report as of today are $0
Hi Naomi4 , welcome to the forum. To zero out these amounts without affecting the general ledger, process a service transaction for each balance but of the opposite sign, and allocate each amount to the receivables or payables control account. GST code of N-T probably applies. Date all as 1.7.21 to match the general journal.
Record each transaction then settle all the sales credits and purchase debits at 1.7.21. Then check that the reports show nil and that the GL balances of the control accounts have not changed.
