How to clear a bank opening balance from suspense?

Hi,

I hope this is the right place to post this question !

I have recently done my best to transfer the accounts of a limited company from paper based onto Sage.

The company started last August with a £10 opening bank balance.
Supplier and customer balances were zero.

If the supplier and customer balances weren't zero and actually had opening balances, then I knew how to clear these balances, following the procedures shown in the book I have as well as in Sage's help files.

But, the problem I have is that I gave the bank current (1200) account a £10 opening balance, using the o/b button and this has created a credit balance of £10 in the suspense account.

Presumably this £10 was deposited into the account from the pocket of the director back in August !

I don't know how and which account to use to journal this £10 out of the suspense account.

Can anyone advise?

Thanks.

Comments
Witch-Queen's picture

To clear a bank opening balance from suspense

Witch-Queen | | Permalink

Hi D_Smith,

Presuming that the £10 was from the Director, create a new nominal 2340 and call it Directors Loan.

Then do a journal from 9998 to 2340 to clear the suspense and show the £10 is owed to the Director.

Any problems email witch@witch-queen.com and I will reply with my phone number, I would be happy to help with anything in Sage anytime (including evenings and weekends). 

I've been using Sage Account, in it's various forms, for over 15 years, and use it every day. I'm always happy to help someone new to the software

  -- Witch-Queen

Share Capital

sandyhatter | | Permalink

The shareholders would have had to subscribe for shares in the company, and pay for these.

Assuming that the directors are also the shareholders it could be that 10 shares were issued and paid for with this deposit.

I would suggest that you check the share capital with the director. If it is 10 £1 shares then the credit entry would be to share capital (nominal 3000). If it is just a loan then follow Witch-Queen's advice. 

Sandyhatter

Thanks for your advice

D_Smith | | Permalink

Thanks to Witch-queen and Sandy for your advice.

Darren

Add comment
Log in or register to post comments
Group: Sage 50 Accounts discussion group
An independent forum for Sage users to share ideas, tips and gripes