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Difference in opening balances in tally

Noman Ali (Accountant) (30 Points)

11 December 2015

Hello Every one I would like to ask a query regarding Tally ERP9, Kindly help me in this regard, I have joined a organisation in which there is no proper accounts maintained till 30 june 2015. And now I am going to make accounts in Tally from 01 July 2015, by the help of bank statement i am entering entries in tally, but if - I want to enter the salary payment of June which paid in july 2015 lets suppose 5,000/- but when I am making this entry on 01 july that is salary payable DR and Bank CR. I have found debit balance in current liabilities negatively ( which going in Assets side). Secondly if I enter opening balance in salary payable of 5,000/- and then make payment entry, I am facing a balance in Trial Balance and Assets side in BS as ( Differences in opening Balances). Please anyone help me in this problem. Thank You

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5 Replies

vinodh (Final ) (182 Points)
Replied 11 December 2015

You can simply make this entry in July on payment date. Salary A/C Dr 5000/- . to bank A/c 5000/- (being salary for the month of June paid.) Or you can make this two entries. Salary A/c Dr 5000/- . to Salary Payable A/c 5000/- Being salary payable for June month. In June month pass this enrty. In July month Salary Payable A/c Dr 5000/- . to Bank A/c 5000/-. Being salary paid.

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Noman Ali (Accountant) (30 Points)
Replied 11 December 2015

Dear Vinodh

Thanks for your response, But as per your 1st scenario I made this entry but it results in negative ( like debit balance in salary payable( Current liabilities) and after being debit, it goes in current assets side..

In Your second scenario I Cant able to enter details in 30 june 2015 because my account book starts from 01 july 2015, and tally didnot allow 30 june entry. Kindly give me another solution please..

CA Prateek Garg (CA in Practice) (1447 Points)
Replied 11 December 2015

In this case first thing you should do is to make a opening balance sheet of business as on 1st July 2015.

Just make a list of all the assets and liabilities of business e.g. Salary payable. As you are making the entries from bank account, you have to enter the balance of bank A/c as on 30th June 2015 to reconcile the closing balance of bank. Similarly there must be other asset and liabilities too like taxes payable, cash balance etc.

Make a list of all these assets and liabilities. Any difference in these shall be the owners capital. In this way you will get the opening balance sheet.

Now open ledgers for all these accounts of balance sheet in tally and mention their respective opening balance while creating these ledgers.

Now you are ready to make further entries w.e.f. 1st July and you will not face any such problem.

Noman Ali (Accountant) (30 Points)
Replied 11 December 2015

Dear Prateek

Thank you for your answer, I have already enter opening balance of bank as owner's capital ( as owner told me this is his capital).

But my question is where is to show payment of salary ( by this its goes to current assets( being debit current liability) in tally).

Or if I make ledgers of both salaries( Expense) and salary payable ( liability) with same opening Balance ?? is this right to do this?

PALLAVI (Student CA Final ) (42 Points)
Replied 12 December 2015

Pass the due entry as well as payment entry on the same date i,e. 01st July. This is so because your office has already messed up the accounts and now you hav got only one way to correct it.