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FIN-X Solutions – Financial Solution Version 7 User Manual
Page 52 of 54
6.5
Hire Purchase / Lease Agreements Opening Balances
This relates to the opening balances on hire purchase and lease loan agreements
that are already in place at the beginning of the year – in other words, the
agreement was made in a prior financial year but the business is still paying the
monthly instalments on the hire purchase and lease agreements.
All that is required is to enter the opening balances at the beginning of the year in
this section.
Hire Purchase / Capitalised Lease Rental Accounts:
HP / Lease Loan Account Details
H1
H2
H3
H4
6.6
Opening balance
HP Agreement 1
HP Agreement 2
HP Agreement 3
HP Agreement 4
-
Enter
opening
balance
values here
Fixed Assets Opening Balances
This relates to fixed assets that already exist at the beginning of the year – in other
words, the assets were acquired in a prior financial year but the business is still in
possession of and using the fixed assets.
The information for these assets is captured in the Fixed Asset Schedule – in the
same way as described in section 4.5 above – individually for each fixed asset
item as follows:
Asset Asset
Description Voucher
class number
M
C
…..
6.7
1
2
VW Polo
Computer
235
376
Purchase
date
Purchase
price (incl.
VAT)
VAT %
Depreciation
rate (%)
24-May-2007
6-Aug-2008
117 350.00
4 675.00
14%
14%
20.00%
33.33%
Accuracy of Opening Balances
Once you have captured all the data relevant to the opening balances it is quite
simple to check the accuracy thereof – simply go to the “Balance Sheet” and
check to see that the totals in the column showing the prior year’s balances for
Total Assets is equal to that for Total Equity and Liabilities.
If these two totals do not agree – there is an error in the opening balances data
that has been captured. This error will also automatically reflect in the “balance”
fields on any of the three data capture screens – the value will be equal to the
difference between the Total Assets and Total Equity and Liabilities values as
reflected on the Balance Sheet.
This difference needs to be evaluated to determine what changes must be made to
the opening balance data – so that the Total Assets and Total Equity and
Liabilities values as reflected on the Balance Sheet do equal each other.