Loan Starting Balance

Problem

balance sheet is wrong for Credit Card or line of credit Loan account, incorrect loan balance. Way too high.
how to handle starting balance in loan accounts

Diagnosis

User reports that the loan balance is wrong (generally way too big). They see this problem either in balance sheet, or in account

Check the loan accounts- what is the starting balance? What is the current balance? Can check transactions if necessary.

Solution

Make sure the starting balance is the AMOUNT OWED when they start using Goldenseal accounting software. It will probably be a negative number (money they owe) rather than a positive number (money owed them).

If they have a line of credit and put the total amount in starting balance, it's probably wrong. That is just the potential maximum loan amount, which should go into the minimum balance field as a negative number.

Comments

Entered 12/10/01 by Dennis.