Trial balance

SUGGESTED

Hello, need a bit of help, please as I am new in this field. I have received a handover with a trial balance for the previous end of year (2020-2021) in which I found a balance b/fwd (without any other details) put on credit side. Is this the opening bank balance (as at beginning of 2020) or is just the difference between credit and debit sides to make them balance? I know that the bank current account should be added but I wasn’t aware about the opening balance. What do you think? Thank you very much for taking time to answer my question.

Parents
  • 0
    SUGGESTED

    Hi Ray,

    Thanks for using Sage City.

    I think the best option with this may be to speak to whoever the balances came from to establish exactly what they relate to.

    You'll need to enter a Bank opening balance so if you haven't been given a balance for that and this balance matches the bank account balance on that day, you may be able to make an assumption, but for safety I think a bit more clarity is required.

    Feel free to come back again if the situation becomes a little clearer.

    Regards,

    Andy
    Sage UKI

Reply
  • 0
    SUGGESTED

    Hi Ray,

    Thanks for using Sage City.

    I think the best option with this may be to speak to whoever the balances came from to establish exactly what they relate to.

    You'll need to enter a Bank opening balance so if you haven't been given a balance for that and this balance matches the bank account balance on that day, you may be able to make an assumption, but for safety I think a bit more clarity is required.

    Feel free to come back again if the situation becomes a little clearer.

    Regards,

    Andy
    Sage UKI

Children
  • 0 in reply to Andy Rickeard

    Hi Andi, thank you for getting back to me.

    It seems that the opening balance is brought forward from P&L Account I don’t understand as figures are different See attachment. There are few good years since I have finished school and haven’t practiced since; I feel that I need a mentor by my side to help me understand the basic.

  • 0 in reply to Ray D

    Hi Ray,

    I think we still need to refer back to whoever you inherited this from for a bit more information. Retained profit is normally code 3100 but there seems to be a code in your accounts that has been set up manually (8000). You might want to look at the Nominal Activity reports for 8000 and 3100 to help you investigate a bit further.

    Regards

    Andy
    Sage UKI