Entering an Opening Balance for Profit & Loss Reserves on the Balance Sheet.

Zumzum Financials Knowledge Base

    Description

    How do I confirm my Profit & Loss Reserves on the Balance Sheet is reconciled with my closing balance from my previous accounting application?

    If you have imported your open Sales Invoices to create opening balances for your customers or open Purchase Invoices to create opening balances for your suppliers, you will see an existing calculated Profit balance on your Trial Balance and Balance Sheet.

    To reconcile the opening Profit & Loss Reserves with your closing balance of your legacy accounting application, please follow the steps below.

    Resolution 

    To reconcile the opening Profit & Loss Reserves with your closing balance of your legacy accounting application, please follow the steps below.

    • Firstly find the current balance of the Profit & Loss Reserves account (for example 4110) at the first date you use Zumzum Financials or same date as the previous opening balances.
    • Deduct your figure from Step 1 from the Closing Balance of your legacy accounting application.
    • Then, please add your Opening Balance entry for the Profit & Loss Reserves account (for example 4110).
    in Financial ReportsSetup Tags: Closing BalanceOpening BalanceProfit & Loss Reserves