Kind of new at this - my specialty is technology, not accounting, but alas I have two "accountants" asking me and I'm not sure where to find information regarding resources for how to balance a Chart of Accounts.
Firstly, my employer recently set up a new ERP (with my help), and so I think it is possible an account might be missing from the new system. Next, we just received our first dividend payment (since setting up the new ERP) in return for buying some stake in a customer (which happened a long time ago). I am looking at the chart of accounts, and they have created an "Investment Income" account under "NON-OPERATING INCOME and PROFIT" in the business' chart of accounts, which I assume I should be increasing as a result, but I am trying to figure out which balancing account to use to decrease in the General Journal to be able to post this payment. Which account(s) on the Chart of Accounts do people typically use to balance such payments?
My fuzzy logic currently is as such...
Recieve the dividend check from the other business:
(+) "Investment Income" & (-) "unknown account"
(+) "Notes Receivable" & (-) "unknown account"
Check clears:
(+) "Bank Account" & (-) "Notes Recivable"
Firstly, my employer recently set up a new ERP (with my help), and so I think it is possible an account might be missing from the new system. Next, we just received our first dividend payment (since setting up the new ERP) in return for buying some stake in a customer (which happened a long time ago). I am looking at the chart of accounts, and they have created an "Investment Income" account under "NON-OPERATING INCOME and PROFIT" in the business' chart of accounts, which I assume I should be increasing as a result, but I am trying to figure out which balancing account to use to decrease in the General Journal to be able to post this payment. Which account(s) on the Chart of Accounts do people typically use to balance such payments?
My fuzzy logic currently is as such...
Recieve the dividend check from the other business:
(+) "Investment Income" & (-) "unknown account"
(+) "Notes Receivable" & (-) "unknown account"
Check clears:
(+) "Bank Account" & (-) "Notes Recivable"