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When should you use Bring Forward Opening Balances in Accounts Production?

Article ID: 2668
Last updated: 22 Sep, 2017

There are two types of trial balance:

  • a transactional trial balance – this is the difference between the comparatives and the closing balance for the current year i.e. the transactions in the year, so perhaps debtors last year were £2000 and this year they are £3000, the trial balance will show +£1000
  • a final trial balance – this is made up of the closing balances in the year and users need to ensure that they post opening and closing balances for items that require this such as fixed assets, profit and loss account (BS), Reserve account (BS), Share Capital.

Some software is capable of producing both a transactional trial balance and a final trial balance, but most software produces a final trial balance.

The option to bring forward opening balances option should only be used if you are using a transactional trial balance as it will post the opening balances so that you can post the differences to reach the year-end balance.

Article ID: 2668
Last updated: 22 Sep, 2017
Revision: 1
Views: 2388
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