taken from the
The Balance Sheet lists the balances of the Asset, Capital and
Liability accounts as at the end of a specified Accounting Period. The Asset
accounts should reflect debit balances and the Capital and Liabilities accounts
should reflect credit balances. The Assets should always balance with the
Capital and Liabilities accounts.
The balancing figure is the Net Profit or Loss. A Net Profit is displayed when the Income account balances are more than the Expense account balances. A Net Loss is displayed when the Expense account balances are more than the Income account balances.
The Balance Sheet will include posted Batches (Journals), updated documents (Invoices, Credit Notes, Purchase or Goods Received Notes and Stock or Goods Returned documents) and Point-of-Sales Invoices for which the Shift is closed. Any Unposted Batches and Documents will be excluded from the Balance Sheet.
The Balance Sheet is generated in the Balance Sheet Options screen on which the following selections will determine the format and the information included in the Balance Sheet:
The Balance Sheet will list the Asset accounts, which is linked to the Assets Financial Category and then the Capital accounts, which is linked to the Capital Financial Category. Finally the Liability accounts, which is linked to the Liability Financial Category in the Setup - System Parameters - Financial Categories menu option. You may also select to print the Liabilities before Capital on the Financial Categories screen. The information on the Balance Sheet is displayed in 4 columns and is as follows:
The Provision for bad debts should also reflected a credit balance on the Balance Sheet in the Assets section, which should reflect debit balances. The provision for Bad Debts is a current asset contra account, which will reflect the net value of the good book debtors.
Individual Creditor Account balances are summarised and a total of all the Creditor Account balances are displayed in the Creditors Control Account in the trial balance. To view a list of the individual Creditor Account balances, you need to generate a Creditor Age Analysis report.
The balancing figure is the Net Profit or Loss. A Net Profit is displayed when the Income account balances are more than the Expense account balances. A Net Loss is displayed when the Expense account balances are more than the Income account balances.
The Balance Sheet will include posted Batches (Journals), updated documents (Invoices, Credit Notes, Purchase or Goods Received Notes and Stock or Goods Returned documents) and Point-of-Sales Invoices for which the Shift is closed. Any Unposted Batches and Documents will be excluded from the Balance Sheet.
The Balance Sheet is generated in the Balance Sheet Options screen on which the following selections will determine the format and the information included in the Balance Sheet:
-
Sequence - select to display the accounts according to the
Account Groups 1 or 2.
-
Select to display sub-accounts or only the main accounts - if
the sub accounts is not selected, the balances for the sub accounts will be
summarised and listed for the main accounts.
-
Periods - The Accounting Periods for a Financial Year using
This Year or Last Year Search or lookup
facility.
-
Select to include zero balances - this will list the Assets,
Capital and Liability accounts on the chart of accounts and will display balances for
only those accounts with balances.
- Select to display decimals for the balances listed.
The Balance Sheet will list the Asset accounts, which is linked to the Assets Financial Category and then the Capital accounts, which is linked to the Capital Financial Category. Finally the Liability accounts, which is linked to the Liability Financial Category in the Setup - System Parameters - Financial Categories menu option. You may also select to print the Liabilities before Capital on the Financial Categories screen. The information on the Balance Sheet is displayed in 4 columns and is as follows:
-
Account - The Balance Sheet accounts numbers and the name of
the accounts will be listed and a total for Asset accounts. The Assets are
grouped in a further classification (Fixed Assets, etc.) as created in the
Setup - System Parameters - Groups (Accounts
tab) menu option and linked to the accounts
in the Edit Accounts - General Ledger, Bank and Tax Accounts menu options. A
total will be displayed for each of the Assets account groups. The Capital and
Liabilities are also grouped according to the account groups and a total will
be displayed for each account group. A Total will also be displayed for the
Capital and Liabilities and it should be equal to the Assets.
-
This Year - The Asset account balances will usually be listed
as Debit balances and the Capital and Liability account balances will usually
be listed as Credit balances. These account balances are the closing balances
of the accounts as is updated when batches and journals are posted and when
documents are updated.
- Last Year - The Asset, Capital and Liability account balances will only be listed if the financial year is closed in the Tools - Global Processes - Do Year-end menu option or if any transactions in batches or documents have been posted to Last Year. This will allow you to compare This Year's balances with that of the same accounting periods in the previous (Last Year) balances.
The Provision for bad debts should also reflected a credit balance on the Balance Sheet in the Assets section, which should reflect debit balances. The provision for Bad Debts is a current asset contra account, which will reflect the net value of the good book debtors.
Individual Creditor Account balances are summarised and a total of all the Creditor Account balances are displayed in the Creditors Control Account in the trial balance. To view a list of the individual Creditor Account balances, you need to generate a Creditor Age Analysis report.
