No sure, what subject to include for this.
This is just a layout of the balance sheet issue (at least for me).
I have asset account under code 0015. This account balance appeared under assets as long as it has a debit (positive) balance.
This is a ‘revaluation of market value account’, so as long as it’s positive, it means the market value of the cost of asset at code 0014 is higher.
However, the market value dropped so 0015 has a negative balance. So this is the first time I noticed in QF that when an asset account has a negative balance, its position in the balance sheet moves to current liabilities.
Is there anyway, one could leave the asset account (even with a negative balance) under assets in the balance sheet?
Thanks
Hi @Sameera
This isn’t something I recall coming up previously, but we can certainly look into this further if there’s enough interest.
I’ve updated the thread so it’s in the feature category.
Hi Mathew
Thank you. However, i think this is an accounting issue which needs to be rectified rather than a feature request.
In the P&L, is one of the sales account i.e. 4002 has a negative balance (this is because on purchase of investment bonds, accrued interest is paid so initially interest received income is negative). I therefore have a negative balance in account 4002 which is a sales account. This did not mean that this account became an expense simply because it has a negative balance.
Same logic applies to any asset account. regardless of positive or negative balance, the asset account should stay under the assets section of the balance sheet.
I hope this make sense.
Thanks
Hi Glen/Mathew
Wondering if you had a chance to look into this. Thanks
I’m afraid it’s not something we’re looking into right now. We show all code balances between 1-2999 on the balance sheet as either assets or liabilities depending on whether they’re in credit or debit. A bank account for example can be an asset or liability depending on whether it is in credit or overdrawn.
If we get further interest in this feature we will certainly look into this further.
Just to mention that the way Quickfile is reporting is quite correct. Being able to credit a sale or purchase is in the Profit and Loss accounts.
The element you are talking about is in the balance sheet. Just like a bank account it can either be an Asset or Liability.
Asset: whilst you have money in the bank
Liability: If your account is overdrawn
Due to the nominal code it will always be recognised as a bank account. However the bank balance will determine if it’s an Asset (money in the account) or a Liability (account overdrawn).
I was reminded of this issue again. As you can see from the screenshot, an ASSET account goes under current liabilities when it has credit balance.
I agree, that with bank account depending on DR and CR balances it should switch to asset or liability. But what about fixed assets?
All I am asking for the asset account to stay under Assets section of the Balance sheet rather than going into liabilities. I am not asking for concept change.
I would appreciate if QF can look into it. Thank you
Hi @Sameera
Within the nominal code range, we don’t differentiate between an asset or a liability - they fall into the same category (“Assets and Liabilities”), and as such as don’t differentiate between them.
We do, as you mention, show them under the asset heading, or the liability heading, depending on their balance (as @1andy_mc mentioned above).
This isn’t going to be possible to change I’m afraid.
