prior period adjustment

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mwatkins324
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Joined: Mon Dec 23, 2013 7:35 pm

prior period adjustment

Post by mwatkins324 »

we have discovered we owe $75,000 to our denomination from not paying dues in 2008-2010. I plan to record it as a notes payable, with DR retained earnings CR notes payable but I am not sure how to post to a prior period. ANy help is appreciated
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Matt
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Re: prior period adjustment

Post by Matt »

You will need to post the transaction in an accounting month that is currently open. To post it as a prior period adjustment (i.e. an adjustment directly to retained earnings) debit the appropriate Net Assets account (e.g. the 3110 account for Unrestricted Net Assets) on the entry.
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