Receivables & Payables Out of Balance
Hi
I have searched your forum for an answer to my question and have found the following answer (*next paragraph). My predecessor has not reconciled anything from 2010 onwards (except for the bank, etc), most of it is easy but I am having trouble with the Trade Creditors and Trade Debtors. I can see the accountant has attempted to do this in 2010 and 2011 with a journal but know that this throws the account out when you do the transaction review through Company Data Auditor (note: when I go into this section to print out a specific period, it prints from the beginning of the entries (2010) right up to today. Is this is glitch or is it because the reconciliations have not been competed. The financial years have all been rolled over as well.
*Typically, the best way to correct this would be to delete the adjusting journals that are incorrect and then reprocess the adjustments correctly. This might be a bit tricky if the 2014 and 2015 financial years have been closed inside your file.
*If these financial years have been closed off you won’t be able to make those adjustments. Instead the most practical option might be to do another adjustment to put those two back into balance and then record any write offs and reversals for the debtors and creditors that haven’t been recorded. If you are going to be doing this then I recommend checking with your accountant over this just to make sure they know what your doing.
Would you help me understand what I actually have to do in order to do 'another adjustment'. When you say 'another adjustment' what are talking here? And also recording 'write offs' and 'reversals' that haven't been recorded. I have printed out the Receivables, Payables or Inventory out of balance and Recording a Journal Entry instructions, but I am a little lost on where to start. Would you be able to assist please?
