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brooklh


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VT Transaction +
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Hi,

I am trying to get my head around the VT Transaction + programme so I can offer clients computerised bookkeeping. However, I have had trouble getting off the starting blocks.

I fully undedrstand double entry but I can't get my head around putting opening balances from the balance sheet into the system. I am using a case study from my IAB levels 1 and 2 course manual and inputting the balances to the system.

The scenario I need to enter Opening Balances for:

Fixed Assets

Shop Premises £60k
Furniture and fittings £30k
Motor van £8k

Current Assets

Bank £10k
Cash £50.00
Debtors £18k

Current Liabilities

Creditors (£6,050)

Net current assets £22,000

Long-term Liabilities

Bank Loan (£30k)

Total assets less total liabilities £90k

Financed by

Capital £90k

I can't get my head around which first and second accounts to use as there are so many entries to choose from!  I have entered the above as what I thought were opening balances but I now have a figure of £126,050 as a negative opening balance.
Any help would be appreciated. I think once I have understood the above the rest I think will fall into place.

Many thanks, Leigh

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kjmcculloch


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Leigh,

Ignore me, I've been a donkey

Kris


-- Edited by kjmcculloch on Thursday 27th of August 2009 11:57:40 AM

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Wella


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As the programs balance error is  exactly (126050) it sounds like the process doubling up some where.
I'm not familiar with the program you are using but it may be to do with the way its version of the chart of accounts is set up. It looks like debits are going in as credits. Can you enter them in as jounal entries?
                      Dr                        Cr


Shop                60000            

F&F                 30000              

Van                    8000                

Bank                10000              

Cash                      50                   

Debtors             18000              

Creditors                                    6050

Loan                                         30000

Capital                                      90000

    Balance        126050             126050
Bill



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kjmcculloch


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Leigh,

Do it as a journal entry.  Just put all the debits then credits as opening balances then save it.  I just tried it and it worked fine for me.

You may need to add or change some nominal accounts.

Kris


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Kris McCulloch 
Tel: 01563 370123

The views expressed in this post are my own personal (HRA protected) views, and are not representative of any organisation I have any involvement with.
Davey


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Yes as Kris says Journal the openining balances onto VT to give you an Opening Trial Balance
with the Debit and credit side totalling 126050. Take a look at the VT Transaction list of Accounts
most are there which you require so you can enter the transaction from you data. You Will
probably need to create an Account for Long Term Bank Loan.



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David
brooklh


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Hi all,

I have opened up the journal entry page but it keeps asking for the credit side as well as the debit...is this right?

I have had to put in £60k debit, Ledger "FA - Plant and machinery", Account "Furniture and Fittings" and entry details "opening balance"then it takes me to the next line down and enters £60k credit automatically and asks for ledger and account details again. What am I doing wrong?

Leigh

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kjmcculloch


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Leigh,

Igone it and just overtype with your own figures. I promise it'll all work out fine in the end.

Kris

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Kris McCulloch 
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brooklh


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Hi Kris,

Sorry, I am sure I am being a complete block head here. I overtyped line 2 underneath with zero but it just put £60,000 into line 3 instead, and when I delete that it just puts it on line 4 and insists I type in something. My entries look like this as the mo:-

DebitCreditLedgerAccountEntry details
1 £60,000FA - Plant and MachineryFurn and FitOpening balances
2 0.00
3£60,000

The answer in my book says that they have debited Shop Premises with £60k and that's all, there are no other double entries. I am totally confused.

Leigh


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kjmcculloch


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Leigh,

For your trial balance to balance your debit total and credit total must balance. What you are seeing on the new line is the difference between the 2 at that point. So put all your entries from the trial balance in and it will work.

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Tel: 01563 370123

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steve99.9


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Leigh

Kris is quite right. If you ignore the second line ie overtype it. That is, in your example clear the 60K from the credit box type then replace it with 30K in the debit box and analyse it to Fixed assets F & F your trial balance will come out right.

However if you still dont get it Try this.

VT Transaction (like most software) works on double entry principles Therefore every Dr entry should have a corresponding Cr Entry and Vice versa. VT Transaction uses an account in Creditors called "opening balance contra account" and this is the one it is trying to direct you to with the second line. If you enter this second line of each entry to this account your trial balance will be correct, and because Debits entered equal Credits the Opening Balance Contra account will be zero.

Hope this helps

Steve

-- Edited by steve99.9 on Friday 28th of August 2009 09:52:23 AM

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