Hi, I have put my Petty Cash £900 and bank balances (£1100) in the said accounts, and a journal has been created shown £2000 in the suspense account, but at end of year, this amount is still shown in the suspense account where do I move it to so I can balance my books.
any help much appreciated
If you have opening balance sheet you should incorporate all of it else move suspense to director loan account if company or capital if sole trader
Thank you I have placed it into the Capital expense, this is money that was left from last year accounting, but now I am doing it electronically I need to know where it should sit so I don’t pay tax on it again.
Sounds like your opening balance journal is incomplete.
The 2 debits to bank and PC should be matched with a credit to proprietor’s capital (sole trader or partnership) or director’s loan (limited co.).
Because the journal entry is incomplete it has been auto completed to suspense, or you may have completed it to suspense.
Adjust the opening balance journal with the credit entry as above. If unable to do that, create a new opening balance journal to debit suspense and credit as above.
Thanks done that seems to work.