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...
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.
