Entering opening balances are important step in accounting setup. You must have all closing balances of your existing Accounting system as Trial Balances; if you don’t have trial balance of all ledger accounts (in Chart of accounts) we have to make right balance in the chart of accounts.

 

Trial Balance must have Total Debit value = Total Credit value


 Latest Trial Balance of ABC Company for the year 2015

Ledger Name

Debit (USD)

Credit (USD)

Stock A/c

10,000

 

Bank A/c

50,000

 

Accounts Receivable A/c

100,000

 

Fixed Assets (land)

500,000

 

Capital A/c

 

450,000

Accounts Payable

 

150,000

Loan A/c

 

10,000

Sales a/c

 

100,000

Purchase A/c

50,000

 

Total

710,000

710,000

 

For Example ABC Company having simple trial balance as below 


ABC Company having Stock in Hand with following Details

Stock in Hand (Closing Stock for the above trial balance)

 

Product Name

Unit Cost

Qty

Total Amount

Product A

100

10

1,000

Product B

100

10

1,000

Product B

800

10

8,000

Total Stock Value

10,000

 

Vendor (Accounts Payable closing balances)

 

Vendor Name

Closing balance (Credit Balance)

Vendor 1

50,000

Vendor 2

100,000

Total (AP)

1,50,000

 

Customer (Accounts Receivable closing balances)

 

Customer Name

Closing balance (Debit Balance)

Customer 1

50,000

Customer 2

50,000

Total (AR)

1,00,000

 

Bank A/c (closing balances)

 

Bank Name

Closing balance (Debit Balance)

Bank 1

30,000

Bank 2

20,000

Total

50,000

 

Based on the above sample data, the help manual will be explained.

 

Prerequisite:


1. All masters should have created for vendor , customer, Item, Bank, Ledger Accounts and Locations

2. Should have configured all the Posting groups and Posting setups

3. Must have trial balance with all closing balances of Customer, Vendor, Item and Bank

 

Step 1.

 

Go to Home > Account > Transactions > Journal Voucher > Add New


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Select the Voucher Type as “Open” as shown in the picture. If you have business group wise trial balance then select the respected one in the “Business Account Group”, otherwise leave it as it is.

The Default Business Group will be accounted for opening balance entry for ledgers.

 

Important Note: We can enter or input all ledgers accounts which are not directly related with Customer, Vendor, Item and Bank through the Journal Voucher entry form.

 

Now, we can enter the closing balances of all Ledger Accounts except the below

 

1. Accounts Payable a/c

2. Stock A/c

3. Accounts Receivable A/c

4. Bank A/c

 

As per our sample Trial Balance accounts in single voucher entry (see the below picture). 


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We have entered all the opening balances but it shows the difference value around $ 10,000 Credit balance, with this system will not allow you to post.

 

So, we have to post the difference value in the “Temp Asset Ledger account” as shown the below picture.


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Step 2:

 

Go to Home > Settings > Opening Entry > Customer Opening Entry > Add new

 

Customer (Accounts Receivable closing balances)

 

Customer Name

Closing balance (Debit Balance)

Customer 1

50,000

Customer 2

50,000

Total (AR)

1,00,000

 

Here we can enter all the customers opening balances (as per our sample data),

 

Important Note: we have to post the difference Value to Temporary Asset a/c at Temporary Account field in the header.

 

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Step 3: Go to Home > Settings > Opening Entry > Vendor Opening Entry > Add new


Vendor (Accounts Payable closing balances)

 

Vendor Name

Closing balance (Credit Balance)

Vendor 1

50,000

Vendor 2

100,000

Total (AP)

1,50,000


Here we can enter all the Vendors opening balances (as per our sample data),

 

Important Note: we have to post the difference Value to Temporary Asset a/c at Temporary Account field in the header.


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Step 4: Go to Home > Settings > Opening Entry > Item Opening Entry > Add new

 

Product Name

Unit Cost

Qty

Total Amount

Product A

100

10

1,000

Product B

100

10

1,000

Product C

800

10

8,000

Total Stock Value

10,000


Here we can enter all the Item opening quantity and value balances (as per our sample data),

 

Important Note: we have to post the difference Value to Temporary Asset a/c at Temporary Account field in the header.


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Step 5: Go to Home > Settings > Opening Entry > Bank Opening Entry > Add new

 

Bank A/c (closing balances)

 

Bank Name

Closing balance (Debit Balance)

Bank 1 (XYY)

30,000

Bank 2 (YXX)

20,000

Total

50,000

 

Here we can enter all the Bank opening balances (as per our sample data),

 

Important Note: we have to post the difference Value to Temporary Asset a/c at Temporary Account field in the header.


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It’s all done.