Ok i run year accounts and i want to submit the balance of banks.
So as you can see here something is going wrong
Credits Euro = 67476
Debits Euro = -68460
= -984 Euro
Credits GBP = -60691
Debits GBP = 59234
= -1457 GBP
The amounts are from same period in both columns.First column is from bank history in Euros.Second column is from trial balance same bank history and is just converted to GBP.
Entries are checked and are correct.Exactly same entries on both columns.So there is a big question here.How is possible to be 984 euro = 1457 pounds ??
But the problem is not only this.Because this difference is growing also from previous year accounts, finally on my trial balance of this year my bank balance appears negative now for GBP amount .It is not possible to have a negative balance in a bank. So ?
And as you can see on amounts , if 67476 euros = 60691 GBP , then it is strange how 68460 euros = 59234 GBP.
The problem comes from convertion i think.So this negative difference is growing each year and now, while Euro account appears normal and positive, the GBP account converted from Euro (because this difference) appears negative.So what i do now ? I submit to accounts that my bank account has a negative balance ?
Since the balance in GBP now is negative, and i suppose this maybe done because loss of value of euro related to GBP, so i think maybe the solution is to submit my cash as negative and to register bank cash on Liabilities instead of Assets.
Is this correct ?
This topic was automatically closed after 7 days. New replies are no longer allowed.