Topic: Opening Balances for Advances to Shareholders


I inherited a set of management account from previous owner of this company.

I noticed that the shareholders owes the company a sum of amount that has been carried forward from 2017. I am in the midst of reconciling this entry into Front Accounting system.

My question would be, how do I create an entry for advances to shareholders, and create an opening balance for this entry to be carried forward in 2018?

Thank you.

Re: Opening Balances for Advances to Shareholders

Use a Journal Voucher. When an advance is given it will be either in cash or by bank entry or notional / abstract value like royalty / goodwill / goods. Use the appropriate contra account that was the source of funding in the first place.