Enter Beginning Balances

How To Enter Beginning Balances

After maintaining the charts of accounts now its time that we enter the amounts in the charts of accounts:

If you are employee in any company then you will be provided by a trial balance, and with the help of these balances you will enter the data in the charts of accounts.

A Trial balance is shown below:

Trial Balance e as on 1^st January 2010 is as follows:

100	Cash	100,000
110	Accounts Receivable	150,000
120	Inventory	200,000
130	Prepaid Rent	12,000
150	Machinery	500,000
161	Accumulated Depreciation: Machinery		50,000
200	Accounts Payable		120,000
210	Salaries Payable		20,000
300	Capital		352,000
310	Retained Earnings		100,000
400	Sales		600,000
500	Cost of Sales	250,000
600	Salaries Exp	10,000
601	Rent Exp	10,000
602	Depreciation Exp	10,000
	Total	1,242,000	1,242,000

Now here the numeric digits are the account ID’s that will help you allocate the desired account if in future you want to amend any values in the account.

After making the charts of accounts, you will click on the beginning balances button and a small window will appear on your screen containing different time intervals as shown in the picture:

As you’ve stated all the heads in the charts of accounts, in the same sequence all the heads will appear in this section and you have to enter the amount.

Now from this picture you will choose that slot from which your balances are occurred / these balances were closed. As the trial balance is on 1^st January, 2010 this means that the entries were closed on 31^st December, 2009 so we will take the slot of “from 12/1/2009 through 12/31/2009”.

After selecting the slot (by clocking on it) following window will appear:

This sheet is divided into 5 portions. We are fimiliar with “Account ID” , “Account Description” and “Account Type. The next two colums are of “Assets, Expenses” and “Liabilities,Equity,Income” which are debit and credit columns respectively. After entering all the values in the concerned accounts you’ve to save the perticular task. You can save it by clicking on the “OK” button on the top left corner of this window of just use short-cut key “alt+O” and your work will be saved and the software will show you the current months closing balance and next months opening balance.