USA Balance sheet

[T-Accountant]

If this balance sheet is off by a negative number one month and then off the next month by the same number but now it's positive, what do you think the issue is and where should I look to figure out where the issue is stemming from?

 

[kirby]

Hi
Sounds like one side of the double entry has an effective date in the future. So look at your entries (particularly general journal entries) in the affected month.
Example

Balance sheet for Feb shows Assets $100,000 and Liab and OE = $110,000
Reason:
Journal entry posted in Feb DR Cash $10,000 effective date MARCH 1, 2016, CR Accts Payable $10,000 effective date Feb 29, 2016.
Most systems will force the entry into balance but not all will.


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[T-Accountant]

Hmmm. How could that happen if the DR & CR is done in the same journal entry with one date?

 

[kirby]

In THEORY no way. Yet in REALITY there you are with this problem. Look at the effective (not posting) dates and be sure. Run a query to find where posting month of Feb 2016 is not equal to effective month and look at those guys.

 

[kirby]

Also maybe a new acct was used but not added to the balance sheet. This can happen with some gl systems

 

[kirby]

One more tool. Run a daily balance sheet report starting from your last date you were in balance every day until you hit the date where you are out of balance. That will tell you the posting date that is causing the error. Review all the postings for that date