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TAKE-ON OPENING BALANCES
TAKE-ON OPENING BALANCES FOR GENERAL LEDGER ACCOUNTS OF A RETAIL ENTITY
  
If you have an existing business and you have accounting records on a previous accounting system, you need to take on opening balances in TurboCASH, unless your data has been converted from a previous version of TurboCASH or Pastel version 5.2 when you start to use TurboCASH.

The closing balances of your General Ledger Accounts can be obtained from your closing Trial Balance and / or Financial Statements (Income Statement and Balance Sheet) of your previous accounting system. The Trial Balance and the Balance Sheet only includes the totals of your Debtors, Creditors and Stock Ledger and is reflected in the respective Control Accounts.

To enter opening balances from a Trial Balance:
Click on the speed button or icon. You may also press the key on your keyboard. Alternatively you may press the and and keys on your keyboard. The Batch Type screen will be displayed.
Select the General Journal Batch Type and click on the button. The Batch Entry screen for the General Journal will be displayed.

 

Minimise button - inactive. Restore button - click to display this screen to full size and click again to restore it to its original size. Title bar - double-click to display the screen in full size or to return to the normal size. Title bar. The name of the selected batch. Title bar. The Alias for the selected batch. Close button - Click to close or exit this screen. Click to delete a selected transaction. Click to insert a row or line above a selected transaction. Click to balance the batch, if the batch is not already in balance. Click to post or update the transactions to the ledger, if the batch is in balance. Click to enter transactions Inclusive or Exclusive of VAT. Click to list the entries or transactions entered into the batch. Click to access more processing options for the batch. Click to set the Options for this batch.
Click on the speed button or icon to set your batch up. The search facility screen listing your available Accounts as well as the Options for this batch screen will be displayed.

Select the Contra Account to which you wish to allocate the balancing entry. Leave blank. If selected, the reference number will increment by a value of 1 for each transaction entered in the batch. Do not select. If selected, the balancing enties will be summarised into 1 transaction where the contra accounts is the same for more than 1 transaction. If selected, the Description will be the repeated for the next transaction. Select to enter amounts in both the debit or credit column. Do not select. Do not select. OK- Your defaults will be saved and this screen will be closed. Cancel - This screen will be closed without saving any changes. Title bar. Close or exit button. Select to hide the tax column and tax lookup facility, since no tax is applicable on Opening Balances. Leave blank. Click to set the standard options for this batch, if not selected. Click to set the advanced options for this batch.
Select the Suspense Contra Account - 999/000 and press the key on your keyboard. The selected account will be displayed in the Contra Account field. Select the following options:
  • No Tax option (since no tax is applicable on Opening Balances) - The tax column and lookup facility will not be available when entering transactions.

  • Repeat Details - Select if the same transaction description applies to all the entries or most of the entries in the batch.

  • Amount Entry - Select Allow both (Debit and Credit), since you need to enter amounts in both the debit and credit columns of the batch.
Click on the Advanced tab to set the Advanced options for this batch.

Title bar. Close or exit button. Click to set the standard options for this batch. Click to set the advanced options for this batch. Leave blank. Select All, if not already selected. You need to enter debit and credit balances for general ledger, debtor and creditor accounts. Select All, if not already selected. You may select general ledger only, since general ledger account (suspencse account) will be the balancing account. OK- Your defaults will be saved and this screen will be closed. Cancel - This screen will be closed without saving any changes.
All options may be left blank. It is recommended that Account code lookup type as well as the Contra account lookup type be set to All (if not already selected). Click on the button to apply your settings to the batch entry screen.
Enter the opening balances from your trial balance on 28 February, the last day of your previous financial year or accounting period in the General Journal. (The following is an example of a Closing Trial Balance).



After the Closing Trial Balance is captured in the General Journal, the General Journal should be displayed as follows:

Title bar - double-click to display the screen in full size or to return to the normal size. Title bar. The name of the selected batch. Title bar. The Alias for the selected batch. Close button - Click to close or exit this screen. Click to delete a selected transaction. Click to insert a row or line above a selected transaction. Click to balance the batch, if the batch is not already in balance. Click to post or update the transactions to the ledger, if the batch is in balance. Click to enter transactions Inclusive or Exclusive of VAT. Click to list the entries or transactions entered into the batch. Click to access more processing options for the batch. Click to set the Options for this batch. Enter the reference number for the transaction in this column. Enter or select the date of the transaction in this column. Enter a description for the transaction. Select the General Ledger, Debtor and / or Creditor Account. Enter debit amounts for accounts in this column. Enter credit amounts for accounts in this column. Scroll bar - scroll to view more transactions entered in the batch. Minimise button - inactive. Restore button - click to display this screen to full size and click again to restore it to its original size.

Do not necessary to "Balance" this batch, as your Trial Balance should already be in balance. You only need to check that the Batch is in balance. The total debit amounts and the total credit amounts should be equal. A zero will be displayed at underneath debit amount column to indicate that the batch is in balance.
Click on the speed button or icon or press the key on your keyboard to change the alias. This will help you if you wish to identify a specific batch, if you wish to generate a batch type report or if you wish to export posted batches to a file.
Click on the speed button or icon or press the key on your keyboard to list the batch. It is a good idea to list the batch and check the entries on the batch thoroughly. If there are any errors, you may edit the batch before posting the batch.
Click on the speed button or icon or press the key on your keyboard to post the batch. TurboCASH will ask you to confirm that you are posting transactions to the previous financial year. Click on the button or press the key on your keyboard to continue posting. TurboCASH will now post all the transactions to the General Ledger.

This concludes the taking on of opening balances for the General Ledger. It is good practice to generate a Trial Balance in TurboCASH at this point and check it with the Trail Balance of your previous accounting records from which you have entered your transactions. This Trial Balance could be retained with your working papers and the previous Trial Balance for record and audit purposes. You still need to take-on the opening balances in the following Subsidiary Ledgers:
  1. Debtors' Ledger - take-on Debtor opening balances.

  2. Creditors' Ledger - take-on Creditor opening balances.

  3. Stock Ledger - take-on opening Stock.

The total of the Debtors Ledger is posted to a Sundry Debtors Account (0DO-PEN Debtors Opening Balances) and not the Debtors Control Account. The amount of this Sundries Account is recorded in the Debtors Ledger and will be reported in the Debtors Control Account in the General Ledger.

The total of the Creditors Ledger is posted to a Sundry Creditors Account (0CO-PEN Creditors Opening Balances) and not the Creditors Control Account. The amount of this Sundries Account is recorded in the Creditors Ledger and will be reported in the Creditors Control Account in the General Ledger.

By using your Cash Book balance as your opening bank balance you have already taken into account all payments and receipts, and can ignore any cheques or deposits on your bank statement from the previous month, when doing your first month's bank reconciliation.