User Support Forum

17th November. 08

I managed to set up the payroll system starting from November 2008.

However, from the previous set up (which was wrongly done) the following amounts appears in the Balance Sheet which needs to be cleared to " ZERO " so the payroll for December onwards will reflect true figures on the Balance Sheet (i.e. correct amounts to be remitted to Canada Revenue Agency and payment of Benefits to Head Office)

CPP PAYABLE SHOWS -$240.90
EI PAYABLE SHOWS -$105.38
INCOME TAX PAYABLE SHOWS -$188.16

GROUP BENEFITS SHOWS $ 83.26
RPP PENSIONS SHOWS $ 45.00

By passing the following journal entries the above figures are then cleared from the Balance Sheet so for December the Payroll Liability will reflect the true figures owed to Canada Revenue Agency & Head Office for the Benefits payment.

CREDIT A/C 01-2205 CPP PAYABLE..............................$ 240.90
CREDIT A/C 01-2207 EI PAYABLE.................................$ 105.38
CREDIT A/C 01-2208 INCOME TAX PAYABLE.................$ 188.16

DEBIT A/C 01-2215 GROUP BENEFITS.........$ 83.26
DEBIT A/C 012230 RPP PENSION................$ 45.00
DEBIT A/C 01-3110 UNRES.NET ASSETS....$ 406.18

PLEASE CONFIRM IF IT IS OK TO PASS ABOVE JOURNAL ENTRY (especially to debit a/c 01-3110 is this the correct account?) TO CLEAR THE BALANCE SHEET TO " ZERO " OTHERWISE PLEASE ADVISE WHAT STEPS TO FOLLOW.

Thanks for your help.

Osvaldo De Souza

18th November 08

Reference my earlier topic sent on 17th November, this morning I tried a different approach to clear the carried forward liability balances from the Balance Sheet.

When making payments to Canada Revenue Agency (for taxes etc) and the head office (for group insurance etc) for the months of October & November instead of using the liability accounts I used the Expense accounts for EI, CPP, RPP, RSP etc and the balance sheet now shows ZERO amounts for CPP, EI, INCOME TAX, GROUP INSURANCE, RSP & RPP.

I did not have to use the account 01-3110 in order to clear the carried forward figures.

Any comments?

Osvaldo De Souza