Opening Balances & Journals

I am transferring my companies accounts package at the start of a new trading year.

I am unsure about entering debits and credits in journals, i.e. Office Equipment value - is it a debit or credit? In which category should I enter the opposite entry

I have entered the debtor balances but this has resulted in an entry in General Purchases, but I think that will add figures to this years accounts.

Many thanks for reading this.

If you obtain the previous year’s closing trial balance from the accounting package or accountant, you will be able to follow the structure of debits and credits in the same way.

With regards to the Debtor and Creditor Opening Balances, You have 2 options, which I have detailed below:

Option 1: Enter Each Invoice

Either enter each sales and purchase invoice, with the actual dates from the previous financial year and then allocate the payments to each related invoice when tagging from the bank in the current financial year. You will need to enter a journal to adjust the opening debtor and creditors balances in order to avoid duplicating the balance.

Or, Option 2: Enter Bulk Invoices

Create a new bulk sales and a bulk purchase invoice, enter the date as the last day of your previous financial year and set the amount as the opening balances, with a description such as ‘Opening balance as of dd/mm/yyyy’. Save the invoice and Update as Sent from the preview screen. Tag all sales and purchase payments on the bank for the previous financial year to these invoices, you will need to keep a separate schedule to identify the debtors and creditors that make up the bulk amount.

You may find our knowledgebase guide on ‘Importing data from another system’ useful. We also have tools to assist in importing the Trial Balance.