Step 4 - Entering current year postings - Limited Company tutorial (ELTD)

The current year postings are to be entered from working papers rather than entering a trial balance.

Select Posting | New to add a new posting entry

Enter the Description as 2008 Working Papers

Leave the  Currency set to UK Pound - £

Select the magnifying glass next to the Account period end field. The Accounting Periods panel will appear. Select the period ending 31/3/08

Select the magnifying glass next to Previous account period end date and select 31/03/2007.

Select OK again to accept the post file entry screen.

Running opening balances

Start a batch of Document type 1 and select OK

You will be asked if you want to generate opening balances, reply Yes.

A panel asks you to select the year you wish to bring forward the opening balances from. Make sure that last year (2007) is highlighted and click OK.

A panel asks you to confirm the date for the opening balance postings. The default date provided, the first day of the accounting period, is correct so select OK.

You will see the opening balances being generated on the posting screen. Once the opening balances have been run we can start making the postings from the working papers using double entry document types.

Double entry document types

The document type selected when a new batch is started determines the treatment of postings made in that batch. To post the trial balance for the comparative year we used a journal document type and made all the postings manually.

To post the control accounts we can use double entry document types. These document types allow you to post one side of an entry and Accounts Production automatically makes the corresponding debit or credit to the nominated control account.

Accounts Production is issued with some pre-set document types. A list of these can be displayed by using the magnifying glass next to the document type number field when starting a new batch.

Starting a new batch

When in the postings screen select Batch control | New to display the Specify Posting Batch panel.

Use the magnifying glass next to the Document Type field to display the list of all document types.

Select document type 4 CB Cash Book This completes the document type field on the screen.

Select OK to accept the details of the new batch. You are taken back into the postings option, but now the document type at the top left of the screen is for cash book postings.

Posting the control accounts

We can now start making the cash book postings using the double entry document type. Only one side of each posting needs to be entered. Accounts Production automatically makes the other side of the posting to the nominated control account.

All postings on the credit side of the bank control account are posted as debits on the postings screen (i.e. you are posting the debit to the expense account, IRIS posts the credit to the control account).

Shown below is the working paper for the bank account with the description of each of the totals, the account to which the posting should be made and the amount to be posted. Make the postings accordingly.

Notice how before you begin posting the balance displayed for the DE Balance field (account 692) is £4000. As the postings for the control account are made the balance changes to show you the current balance on the bank control account. When the cash book postings are complete this balance should be £10174.

Make the posting for the first of the items in the bank control account as follows:

For the directors' remuneration and national insurance, the account numbers are marked with a *1 or *2, which matches the accounting order of the director that figure is in relation to.

Bank control account

Once the bank account postings have been entered we can move on to post the other working papers. Before posting the next control account you must change the document type.

Select Batch control | New. Complete the Specify posting batch screen with document type 6 PDB Purchase Day Book. Now you are posting the debit side to the expense accounts and IRIS posts the credit to the control account.

Remember to alter the narrative.

Purchases control account

The next control account to be completed is the sales control. Select Batch control | New. This time start a batch of document type 7 SDB Sales Day Book double entry postings.

Remember to alter the narrative.

Sales control account

Reversing journals

Accruals and prepayments can be made using a document type that reverses when opening balances are run next year. Select Batch control | New. This time start a batch of document type 8 ACC Accruals.

Delete the narrative.

Make the following postings. Note that only the debit side of the posting needs to be made. Accounts Production automatically posts the credit side of the posting to accruals in the balance sheet.

Select Batch control | New. This time start a batch of document type 9 PRE Prepayments.

Make the following postings.

When asked the question 'Debit expected, credit entered. Change amount?' Click No.

Journal Entries

Now that the main control accounts and reversing entries have been posted some journal entries need to be made. Select Batch control | New. This time start a batch of document type 11 JNL Journals.

The final journals to be entered are regarding the motor vehicle purchased on hire purchase during the year. The control account is laid out below. The repayments have already been posted from the Bank Control Account so we need to journal in the remaining entries, splitting the amounts as appropriate for the disclosure requirements.

Hire Purchase Account

Select Close to exit the Posting option.