Hi, I have a trial balance from a clients previous account which I am entering the opening balances from. Just one thing I'm not to sure of, where do I put the net profit for the year please? There is nothing automatically set up on VT for retained earnings but surely this just goes into the capital account somewhere? if not, should I set up a retained earnings account? and if so can anyone tell me exactly where this should go.
For mid year changeovers you would enter the income and expenditure and the current period profit would be calculated. That isn't something that you would enter seperate to the other fields that result in that profit.
There is nothing to set up.
kindest regards,
Shaun.
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
But how can I enter all the opening balances into VT? it's out by the amount of net profit. Does that mean I have to eneter everything from the trial balance rather than just the balance sheet items (no balance sheet has been given, just a trial balance).
Of course otherwise you would have no prior period comparatives which is a reporting requirement.
You enter the amounts against the Opening Balance Contra's as balances for the prior period so your closing position is able to produce exactly the same accounts as was filed from the trial balance.
This assumes that the trial balance that you have relates to the period end. If not, you can enter the closing position from the full set of accounts.
But yes, you will be entering every P&L total for the prior period to give you your opening position with comparatives and your opening figure.
kind regards,
Shaun.
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
