Hello, Right now I am in a hot seat. I got this new job in a Marine Logistics Company. Since 2010, the company have been practicing single entry system using excel as a software. Now my first assignment is to migrate the whole accounting system to Peachtree Accounting Software which they have adopted to use at the last AGM and at the same time apply the double entry system of accounting. Now my question is, am I going to start from 2010 before I can ascertain the prior year adjustments that will be brought forward as beginning balances in the Peachtree Software or I should only carry forward this years 2018 balances? My most challenging scenario is the fact that they don't have the figure for Capital Introduced and some other faucets of the charts of accounts. Please I just need a professional advice here...in order not to make matters worse. Thanks.
From Single Entry System to Double Entry System
Answers
If it were me, I would start with 2018 balances, and not try to recreate 8 years' worth of journal entries. The excel sheets should be preserved and will be the official accounting records for the time prior to 2018 or when the records were started in Peachtree. You will have to create the trial balance at a point in time, which may involve researching past transactions to understand the equity piece and get the trial balance to balance.
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Accounting