- This topic has 3 replies, 2 voices, and was last updated 1 year ago by
John Moffat.
John Moffat.-
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lokeshdh00
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Sir, I was a bit confused wondering what might be journal entry for opening balance (Bal. B/F) in any account.
Also what would be correcting entry if, Opening balance is not brought forward?
Thank You
John Moffat
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If an opening balance has not been brought forward then the trial balance will not balance, so we will open a suspense account.
When we correct the mistake by bringing in the opening balance, then if the opening balance should be a debit then we debit the relevant account and credit the suspense account, whereas is the opening balance should be a credit then we credit the relevant account and debit the suspense account.
Have you watched my free lectures on suspense accounts? The lectures are a complete free course for Paper FA and cover everything needed to be able to pass the exam well.
lokeshdh00
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Hi sir, How are you ?
I was very curious about Treatment of discount allowed in SOPL while preparing A full Statement for overall practice in all adjustments.
I know discount received I reduced from purchase and then we calculate Cost of goods sold. But I was wondering about Discount allowed , If it reduced from Revenue ?
John Moffat
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In future you must start a new thread when you are asking about a different topic. Discounts have nothing to do with suspense accounts.
For sales, the ‘rule’ changed with IFRS 15 and the sale is recorded net of the discount.
This is explained in Chapter 19 of our free lecture notes and the free lectures that work through this chapter.
lokeshdh00
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