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URGENT help needed please! End of Year adjustment made to retained earnings -Why? How to fix it?

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marionqua
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URGENT help needed please! End of Year adjustment made to retained earnings -Why? How to fix it?

I am using MYOB Accounting for Windows

Malaysia Release version 14

Release 7.5.3k

Copyright 2004

 

Old, I know, but it's the only tool I have on the work computer since this is a REALLY small 2-man show.

Any help is greatly appreciated as we're already in our extension period to submit our audited accounts and tax return to the government!

 

(1) MYOB made a $585,718.47 adjustment to the retained earnings (3-8000) at the beginning of the year and I can't figure out why or how to fix it and it's throwing all the figures off.

 

(2) In the General Ledger, the 2014 opening balance SHOULD be $1,089,868.31 (ie 2013 closing balance).

Instead, it is $1,675,586.68 i.e. = the correct opening balance $1,089,868.31 + the adjustment $585,718.47

 

So the opening balance has the adjustment in it. And then the adjustment is recorded AGAIN. So the $585,718.47 is actually taken into account TWICE.

 

My questions are:

WHY was this adjustment made?

HOW do I fix it?

 

I've attached the following documents (minus company details)

Trial Balance

Profit and Loss

General Ledger

General Journal

Balance Sheet

 

Thank You.

Marion

marionqua@yahoo.co.uk

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Ultimate User gavin12345
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Re: URGENT help needed please! End of Year adjustment made to retained earnings -Why? How to fix it?

Hi @marionqua

 

You have posted on an Australian MYOB forum, and so most users here would anly be able to give general information. If there is a problem with what your Malaysian Version of MYOB is doing, you may get more specific advise and explanation by contacting MYOB in your area.

 

I can briefly explain what is meant to happen. If this is not what has happened, the developers at MYOB in your country would be the best ones to speak to.

 

At the end of the first year, there will be no retained earnings on the balance sheet, as nothing was earned last year. The Balance Sheet will show current Year Earnings which should match the current years P&L (say 50,000).

 

When you start a New Financial year in MYOB, a system generated General Journal called 'End of Year Adjustment' dated 1 July transfers last years profit of 50,000 to Retained Earnings. So if the profit in Year 2 is 20,000. The Year 2 Balance Sheet will show Retained Earnings of 50,000 and Current Year Earnings of 20,000. 

 

When you start a new year - Year 3, on 1 July there will again be a system generated General Journal called 'End of Year Adjustment' which will transfer 20,000 from last year's profit to Retained Earnings, so Retained Earnings will now be 70,000 on the Balance Sheet for Year 3.

 

This is how it is meant to work. You cannot and should not changes these system generated journals entries. If this is not what has happened in your accounts (I have not looked at the attachments), then something is wrong with the software.

 

 

Regards

Gavin

marionqua
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Re: URGENT help needed please! End of Year adjustment made to retained earnings -Why? How to fix it?

Thanks for the explanation Gavin. Something did go wrong and I'll try to get someone here to fix it.

 

For some reason the end of year adjustment does not appear in previous years (I did 2008-2013 accounts all in a block as employer was later preparing them) but only in this year.

 

Also, in the General Ledger, the end of year adjustment figure was taken into account twice.

 

Will look for someone at this end to help. We might need to pay for support. Posted here in desperation as I couldn't find Malaysian help boards.

MYOB Moderator Liam_M
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Re: URGENT help needed please! End of Year adjustment made to retained earnings -Why? How to fix it?

Hello @marionqua

Good luck in finding assistance for your software. Unfortunately as MYOB Malaysia is a separate company and develop their products themselves, other than the general advice that Gavin has given you above, there's not a lot we can offer you, expect to direct you towards the support section of MYOB Malaysia's website.

 

It does also look like MYOB Malaysia does also have a third-party partner program. You might be able to find external support by looking at their partner list.

Once again, good luck!

Kind Regards

Liam
MYOB Client Support
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