Total Liability+Total Fund Balance differ from Total Assets

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Russ
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Joined: Tue Jan 13, 2009 8:05 pm
Location: Markesan

Total Liability+Total Fund Balance differ from Total Assets

Post by Russ »

Fund balance 04-3001 is a -$2,000 and should be $0
This has been off for several years and now we need to get this to balance to start the new year 2009. I have made changes in year end to fund balances so all are correct except fund balance 04-3001 which we are not using anymore. Is there a way to correct this old error and go on from here?
Thanks

JohnDMeyers
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Joined: Sun Oct 07, 2007 9:50 am
Location: Potsdam, NY
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Post by JohnDMeyers »

You incurred the -2000.00 because of a loss a few years ago.

You can't go back and make an entry that far back, but you can do this:

debit 04-4950 unrecoverable income $2000.00
credit 04-3001 (equity account) $2000.00

It will show a negative income in that account all this year, which is what really happened a few years ago and it didn't get recorded.

When you close out this year, the accounts will be ok.

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