Profit and Loss Issues - Startup Loan

hi glenn

please help, we have been trying to spend a bit of time really sorting out our accounts. i we had a loan of 9,000 that was a virgin start up loan, at first this was listed as an invoice but i have changed it (i think) to a separate bank account with a balance of 9000. i think i should have changed this to -9000, i have since detagged payments made to loan and tagged them in to that bank account.

under our profit and loss report it all seems fine until you get to less expenses and it has 9998 suspense account 9000 witch seems to throw the whole thing out.

i also removed our tagged bank account as we have been manually importing all income and outgoings this meant all our payments reverted back to unpaid, so unfortunately i had to log all payments in one go as debit card.

sorry to load you with all this



Hi Pete,

I can’t see your account so I don’t know exactly what’s going on, but can you confirm you’ve set up the loan as per this guide please?

hi thanks for getting back to me, yes i have now set it up as a bank ac, i set the opening ballance as 9000 not -9000 and i cant seem to change the opening balance

I’ve never dealt with opening balances in all honesty but I’ll try to help.

When is the opening balance set for? Is it in a locked period?

the opening balance is set when the account is opened, in the amount of the loan amount, payments are then logged, i actually think i have sorted this out not, but i am having a few problems with reports etc…

Any sort of bank account, loan, credit card or otherwise that has an opening balance configured will drop the counter entry into suspense (9998). You would then create a journal to move the 9998 balance out of here into the appropriate nominal code. The suspense account is just a way to temporarily store the double entry until you determine where on the balance sheet it should go.

I can’t tell you where exactly it should be posted to as it depends on the nature of the loan. This may however help you:

hi, i think i have it sorted now, thank you. i do however have some figures that seem wrong are you able to see our profile and have a look?