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ginasanchez
December 17, 2020
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Deleting old liability accounts

  • December 17, 2020
  • 1 reply
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Another question: we have two old accounts showing in "Other Current Liabilities" that have nothing to do with this fiscal year, but they show up on the balance sheet and affect the numbers in a major way. I cannot delete them because they have a balance (even though it is a negative balance, it is not $0). I believe the previous accountant did not account for these correctly. What kind of entry can I make to get them off of this year's and all future year's books?

Best answer by MarsStephanieL

Hi there, @ginasanchez.

 

You can create a Journal Entry to zero out the Other Current Liabilities account. I'd also recommend contacting your accountant to know what is the best account to use against this account.

 

Here's how to create a Journal Entry transaction:

 

  1. Navigate to the Company menu and select Make General Journal Entries.
  2. Fill out the fields and make sure your debits equal your credits when you’re done.
  3. Select Save & Close.

To know more details on how to manage your Journal Entry transactions, you can check out this article: Create a journal entry in QuickBooks Desktop for Windows or Mac. This contains steps on how to edit, reverse, and delete the entry.

 

I've added this article for your future task when running financial reports in QuickBooks Desktop: Customize company and financial reports.

 

Please don't hesitate to comment below if you have other questions. I'm here to back you up.

 

1 reply

MarsStephanieL
MarsStephanieLAnswer
December 17, 2020

Hi there, @ginasanchez.

 

You can create a Journal Entry to zero out the Other Current Liabilities account. I'd also recommend contacting your accountant to know what is the best account to use against this account.

 

Here's how to create a Journal Entry transaction:

 

  1. Navigate to the Company menu and select Make General Journal Entries.
  2. Fill out the fields and make sure your debits equal your credits when you’re done.
  3. Select Save & Close.

To know more details on how to manage your Journal Entry transactions, you can check out this article: Create a journal entry in QuickBooks Desktop for Windows or Mac. This contains steps on how to edit, reverse, and delete the entry.

 

I've added this article for your future task when running financial reports in QuickBooks Desktop: Customize company and financial reports.

 

Please don't hesitate to comment below if you have other questions. I'm here to back you up.

 

G
ginasanchezAuthor
December 17, 2020

My issue is that I do not know which account to use against it to make it zero. The old accountant/bookkeeper for my firm does not want to help with any of the books and the accountant the company uses does not want to do anything but taxes. In other words, there is no one to ask for help. 

 

If someone could even give me an idea of what account to use against it to bring it to $0, I could try it and see how it affects the books.

 

Supposedly the situation is that my boss was given $38,500.00 to manage for a lady named Knight. The company gave her $500.00 per month from 01/07/2013 to 04/15/2019 for a total of $38,500.00. The way the accountant entered this, I do not see the initial deposit for $38,500.00 - she just created a Knight account and started deducting $500.00 from the business bank account until it reached $38,500.00. In QB each month there is a check written from the bank account and paid to Knight, and it is expensed against the Knight account.

    J
    jperry7
    March 22, 2022

    I am having the same problem. We have old liability accounts with a negative balance that will never clear to zero. Did you find a solution to this issue? I know it can be journaled out but what account should it go against? 

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