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V
vishvajeet-smboo
March 28, 2024
Question

In balance sheet: Asset value is not getting equal to Liability + Equity values

  • March 28, 2024
  • 1 reply
  • 0 views
As the company is multi currency, i am doubting this is happening because of conversion ration, but i could not resolve the error, can any one please suggest how to move ahead and resolve this. 

Thank You!

1 reply

A
Anonymous
March 28, 2024

Hi there vishvajeet,

 

Thank you for sharing this information with us. Let me share some information about why the Balance Sheet is out of Balance.

 

A Balance Sheet report, also known as a statement of financial position, provides a snapshot of your business’s financial standing at a particular point in time. It allows you to evaluate your business's financial health and performance by showing the value of assets, the combined value of liabilities and equity, and the relationship between them. The formula used to calculate this is Assets - Liabilities = Equity.

 

If your balance sheet is unbalanced, you can troubleshoot it by following these steps:

 

  1. First, check the conversion ratio to ensure it is correct, especially if you are using multicurrency.
  2. Review each account on the report to see the transactions associated with the balance of each account.
  3. Run the report for the year-to-date (YTD) period and gradually narrow down the date range each month until you pinpoint the specific day when the balance sheet becomes unbalanced.
  4. Check the transactions during that narrowed date range to find the specific transaction causing the imbalance.
  5. Take the necessary steps to fix the issue and bring the balance sheet back into balance.

 

Keep in mind that before generating balance sheet reports, it may be beneficial to seek advice from a professional bookkeeper or accountant to ensure the correct procedures are being followed.

 

For complete details and a thorough explanation of the factors why it happened, I would recommend checking this article: Troubleshooting incorrect balance and mismatch with account history

 

Moreover, I would also like to suggest the following articles to help you manage your balance sheet reports:

 

 

If you have any questions about the Balance Sheet report, please feel free to ask by commenting below. Take care and have a great day!

V
vishvajeet-smbooAuthor
March 29, 2024

Hello Eman_E,

Glad to know my troble shooting method and your suggestion matches (smile) .

However below is my finding, In quick book the ration has only the 7 digits after decimal howver my convertion ration comes with more digits after decimal.

Example: 

USD Value : 210.0.
AUD Value : 332.70

Convertion ration by calculation : 1.5[removed]5714

In quick book we can feed only up to: 1.5842857

 

My doubt is whether this limitation is resulting the difference, as asset is getting matched with the actual bank transaction(332.70) via bill is getting matched with the equity amount (210*1.5842857 = [removed] )

Thus in this transaction a differecne if .01 is appearing.

let me know your thoughts on this please.

Thank You!

V
vishvajeet-smbooAuthor
March 29, 2024
CaseDateAssetEquity+ LiabilityDifference
Case-108/09/201522,658.3822,466.67191.71
Case-107/09/201522,658.3822,566.6891.70

 

In this case, i did not find any transaction/bill paymnet with multi currency.

for these two dates, any troble shoot you wanna suggets here.

 

Thank you!

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