changing liabilities

[lmschuelke]

When we started with pcp v 9 we set up our payroll accounts wrong and now have wrong amounts for the tax libilities. Is there a way to adjust these liability accounts to the correct values? (PCP was not our "official accounting system for 2004, but will be for 2005 so we want the numbers to start out correct. We don't want to just delete all the data because most of it is correct and we want to retain it for budgeting purposes) Any suggestions? Thanks a bundle.

[Zaphod]

A transaction where you debit the liability and credit the net equity (fund balance) seems appropriate for clearing out those accounts. You might want to double check that with an accountant though.

[Randy B]

If you have closed your 2004 year and the liabilities are overstated, then Zaphod's advice is correct. Debit the liability and credit net worth. If though your liabilities are understated, then you would have to debit the net worth and credit a liability. If you have run any payroll for 2005, an entry adjusting expense and liability accounts would correct your problem.

[lmschuelke]

Thanks guys! I appreciate the feedback that's so practical! God Bless!