Quicken & Other Budget/Accounting Software/Income
Closing of a/c in Dec14 for year 2014, there is a balance of $4,641.20 from the holding company (Income).
How do i move this balance to Amount due from Holding Company under "Other Asset"?
I dont know the answer to this one as I am unclear
as to how and why the 4641.20 was posted to income
I will assume that the 4641.20 is a credit balance if
it was posted to income
Therefore a Debit would be required to bring it to zero.
Now you need to decide where the credit should be posted
If you post a credit to an "other asset" , then the balance
will be a credit balance in an "debit balance" account.
(Assets are debit balance accounts). That would display as
a negative number on the balance sheet.
If indeed we have to post a credit, I would then assume tha t
the money is due to a related party company. So I would set up
a Liability accont alled Due to XYZ company.
You asked how to move it. You would use a jouranl entry.
Debit the income account (if it is a credit balance)
Credit the Due to XYZ account
Linda Saltz, CPA
Advanced Certified QuickBooks Advisor
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