In the last few weeks a couple of clients have called re previous year journal adjustments as the effects had given rise to some confusion.  The following screens describe an example:

Before running the Year End:

 

Balance on accumulated profit:

 

Balance Sheet extract:

 

Balance on Light and Heat P and L account:

Profit and Loss extract for the year:

After the Year End:

 

 

Extract from Balance Sheet:

Light and Heat account having run account maintenance to move previous year P and L transactions to historical tab:

Then using the previous year journal adjustment option to post as below:

The effects of the previous year journal adjustment are shown.  On the Light and Heat account the b/f balance is adjusted so as to leave the c/f balance unchanged:

The b/f balance on the accumulated profit is adjusted by the value of the prior year posting and so the c/f balance is adjusted also:

The Balance Sheet extract shows Profit/Loss Carried Forward reduced by the prior year adjustment:

 

Running the prior year Profit and Loss now reflects the adjustment:




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