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• # 97499
• Tue 04 Feb 2014 05:36 PM

Hi 

I could really benefit from some advice please.  I am part qualified, still studying and have been helping a friend who has recently set up her own business, with the books, to gain practical experience, of which I have none.   I have also been Treasurer to a local charity for the last year, keeping their accounts in order, (these are fine.)

The problem I have is with my friends accounts, I am unable to balance the Trial Balance.    The business has been operating approx 4 months Currently, her expenditure is more than her income and she is constantly putting in money to the business, through cash in to Bank, also using personal credit cards to pay some invoices,  which I am recording as Capital still.  In December alone this equated to almost £4,000.  The amount of invoices I have input so far are huge.  I don't have Sage, so am using T account's (the only way I know, as I've been taught) in Excel.  I'm not sure if this is the right or wrong way, but it's certainly the most time consuming, I am making 2 or 3 entries for each item.  

I'm really concerned that I am unable to balance the Trial Balances, I have checked the figures, to make sure I have a debit for every credit, also rechecked invoices.  All of the accounts are on the right side be it debit or credit and I have not missed any accounts or suppliers account out of the balance.  Can anyone please give any suggestions, what I could have missed out or where I have gone wrong.  I am out by £680 on a £16,500 balance.   The accounts have certainly been an eye opener in gaining practical experience, that's for sure.  

Can I also ask, as I'm also having real worries, as to whether I can achieve my goal.  Is this normal when first starting out?  Has anyone else encountered difficulties, such as this?   Apologies if a daft question, but am really beginning to ponder my ability or lack of it.   

Any by help or advice would be very much appreciated please.  

Many thanks in advance.  

Tracie 

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• # 97500
• Tue 04 Feb 2014 06:15 PM

Hi Tracie,

Have you been doing trials balances as you go? or just now when you finished all entries? As you could go back to a point you know it balanced and then take it from there, the mistake should become apparent, if not you could start at the first month and do a month by month trial balance and see which month there is a mistake if it is only 4 months it won't take long to balance the monthly totals. Also have you checked your formulas? It could be that which is knocking it out.

I noticed it state you are an affiliate so you are only meant to be doing supervised accounts work, so you may want to check with the ICB that it is ok you are doing this, if you have not already done so.

• Essence Bookkeeping

  www.essencebookkeeping.co.uk

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• # 97501
• Tue 04 Feb 2014 06:55 PM

Hi Tracie

I presume that if you are still studying and only helping out for practice that your friend will have an accountant anyway, so I shouldnt worry too much. You will be fine. I would do has the others have said in order to check your work but its possible that your friend has forgotten to tell you of something. Has she set up a separate bank account so that you can check the bank statements? You say that you are using T accounts as you are taught, which is great for the exams but in the real world a bit of a nightmare. Why dont you download something like VT Cash book which is free or Quickfile (also free), or a trial version of any of the others solar etc, and have a go at entering them into that. You could ask your friend to do it, so its in her name. Im sure you will find that it is something very simple that you have missed. 

Very best of luck 

Lainy xxx 

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• # 97505
• Tue 04 Feb 2014 09:56 PM

Hi Kelsmic

Many thanks for your reply, yes I have been doing the trial balances at the end of every month as I go.  It has been quite a task although, 4 months may not seem long, the amount of entries due to purchases have been astounding.   I think the formulae is ok, so will recheck all of the invoices entries again.  

Thank you for the advice about supervision, I will check it out.  I am only helping a friend though who was in a total mess with it all.  She will be using the services of an Accountant also.  

Thanks again, Tracie 

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• # 97506
• Tue 04 Feb 2014 10:17 PM

Hi Lainy 

Thanks ever so much for replying, I really appreciate your feedback on everything.    Yes, she does have a separate Bank account and I have reconciled these, so that side is ok.   She's a totally lovely person, but a complete nightmare with money, hence me helping her out.   Well, we're helping each other out really. 

You're so right on the T accounts, total nightmare!  I will look up the programmes you have suggested and let her know.  I think anything has to be easier.   This is where my lack of experience really shows and I really appreciate your advice on this. 

Many thanks once again for your advice, feeling a bit happier now.  

Best wishes. 

Tracie x 

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• # 97514
• Wed 05 Feb 2014 01:12 PM

Hi Tracie

Glad you are feeling a bit happier now. It will be fine. 

Very best wishes 

Lainy xxx

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• # 97522
• Wed 05 Feb 2014 08:02 PM

Hello Tracie,

I would certainly try VT Cash book - what I've done is to set up a bank account called 'Paid from personal account' and then transfer the balance to capital introduced each month/year.

Sounds like great practice!

Regards, Fiona

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• # 97568
• Mon 10 Feb 2014 07:34 PM

Fiona~ said:

“

Hello Tracie,

I would certainly try VT Cash book - what I've done is to set up a bank account called 'Paid from personal account' and then transfer the balance to capital introduced each month/year.

Sounds like great practice!

Regards, Fiona

”

Hi Fiona

Thank you for your reply and advice, I have just downloaded QuickFile as suggested by Lainy, I've had a look at VT cash book, but Quickfile looks a little easier to navigate, but that could just be me.  I have not entered any info yet, so will have another look.  

I've been gaining experience by volunteering as Treasurer for a local disabled group for the last year and just finished the end of year, so am happy that all balances.  I'm happy to help my mate out as we're both benefitting, have never done any sort of bookkeeping/accounts work before, so a whole new ball game for me.  

Thank you so much for your good wishes and advice, really appreciate it.  :-) 

Tracie x 

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