Bringing Forward Balances


When you are ready to bring forward balances you need to have a trial balance on your existing system so that you're sure that you have a firm basis for all the figures on the ledgers. The balances on your trial balance need to be entered onto the appropriate ledger accounts. You do not need to set up the bank sheets and VAT sheets separately as these are generated from the entries on the ledgers.

You reference ALL b/f balances to O1 or C1. Do not try to separate out costs and VAT and Petty Cash.

Note that. if not already present. you can set up the drop down listing for the office bank on both the nominal and client ledger entry screens (it has to be done separately for each) to have an entry "BROUGHT FORWARD" in the dropdown details listing.  If this is set up as the first item in the list (for the moment anyway) it will make it easy and quick to select and may save you getting 'writers cramp' from all the similar entries you need to make!

When you have finished and entered all figures you should find the total on the client account is absolutely correct. You will probably find the Office Bank is out. This is usually because the O1 b/f figures include elements of VAT and costs and Petty Cash.

The easiest way to resolve this is to make entries as follows:-

On the Customs and Excise ledger in the nominal ledger you make an entry to adjust for the VAT. Assuming that you have a balance owing to customs and excise (ie: outputs exceed inputs) of say £2000.00 you will make the following entry:-

VAT b/f V1 2000.00

VAT b/f adjusted O1 2000.00

This debits the office bank figure with the global VAT figure.

To deal with costs the situation is similar but you cannot enter B1 directly. So open up a dummy client account - call it START UP and assuming your costs outstanding is £2500.00 you would enter as follows:-

COSTS b/f B1 2500.00

COSTS b/f adjust O1 2500.00

This will "charge up" the Bill Book with the global costs figure and debit the office bank with the figure that does not form part of the office bank balance.

Finally for Petty Cash you can do the same. Assuming you have £55.00 in the Petty Cash you select the Petty Cash nominal account and enter as follows:-

B/F P1 55.00

B/F adjust O1 55.00

In theory this should adjust the Bank Balance so it is right.

In practice if it doesn't we suggest you open a nominal suspense account and make an entry on this sufficient to get the Office Bank balance correct.

(NB If payment is being made for use of C-Law software on the basis of the purchase of blocks of entries, then the initial 'brought forward' entries on new ledgers opened are "free" and do not count towards the total of entries used. But do not try to put any other details in either details box other than the BROUGHT FORWARD legend otherwise they will be counted!)


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