New bank created in liability section

When I create a new bank the nominal code is created in the liabilities section with the credit balance showing as a negative liability, how do I remedy this and prevent it happening in future?


Hi @Vistaro

Where are you seeing it as a liability?

Hi, On the balance sheet liabilities section, nominals 1204 onward

When you create a bank account. If the starting balance is less than zero (as in its overdrawn) then it will show on the balance sheet as a liability. Which is correct.

If you forget to give the new bank account an opening balance, then the running balance will be incorrect, and if the end balance shows as a negative, that too will show as a liability on the balance sheet.

To remedy this, you need to most likely add an opening balance.

If the account is in fact in to an overdraft. Then the liability on the balance sheet would be correct.

The accounts were all in credit when opened (or zero balance) and remain so

They show as negative liabilities which numerically is correct but clearly they should show in the assets section (as positives)

All the bank accounts have automatic feeds and reconcile to the current (in credit) bank balance

Negative balances under liabilities is correct in certain situations but I don’t believe that should apply to a bank account in credit so something else must be wrong here. Might need admin to take a look.

Thanks @QFSupport maybe we can take this to messages and deal with it?

Are these foreign currency accounts? It’s possible that the in-currency balance (e.g. EUR, USD etc) is showing zero, however the GBP equivilent is reflecting your accumulated loss/gains. You can periodically adjust these out using the method described below.

Journalling out currency loss/gains

Be careful about the words “credit” and “debit” in relation to bank accounts. In the nominal view a bank account with money in it is shown as a debit, and an overdrawn bank account is a credit. This is backwards from how you’re used to seeing it on your bank’s statements but it is correct from an accounting perspective.

Hi. some but not all are Foreign trans, I’ve also just noticed that although the bank screen shows the correct balance the balance sheet is significantly different in some cases

Will also have a look at the article - I’d expect small differences due to FOREX rates but not significant ones

Good point and will check but seems strange my issue doesn’t affect all bank accounts

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