Entering Balance Account

1. Start your adjusting entry by entering key information such as posting date, account type and account number (depending on your general journal batch settings, document number may or may not auto populate).




2. Next, choose the applicable Balance Account Type and Balance Account Number.




3. Finish the entry by entering Dimensions, Description and Memo, and finally the Amount.




4. Post or Post & Print the entry when ready.

  Understanding Balance Account

1. The use of a Balance Account eliminates the need to write two-line entries in General Journals since the line contains two accounts: one to be credited and one to be debited.



 

2. The Amount listed on the line is applied directly to the Account Number. In the example below a $5,000 credit is posted to account 4910, Rental Income.




 

3. The Balance Account receives an equal opposite Amount. In the example below a $5,000 debit is posted to account 1999, Undeposited Funds.




4. Since the entry contains two accounts, and both a debit and credit, it is in balance and can be posted without entering a second line.



 

5. The result of posting this transaction is a credit to account 4910 and debit to account 1999 in G/L entries.



 

  Other Examples

1. Posting revenue needing to be deposited: credit Rental Income and debit Undeposited Funds



 

2. Transferring assets between two bank accounts: debit Checking Account and credit Joint Investments Account



 

3. Posting an expense to a vendor: debit Office Supplies Expense and credit Office Depot/Accounts Payable



 

4. Posting a Payment to a vendor: credit Checking Account and debit Office Depot/Accounts Payable


 

5. Adjusting net assets: credit Net Assets – Spendable and debit Net Assets – Accumulated Earnings