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Accounting Tutorial › Without Fund Accounting

We will now enter the opening balances for SpringTime as taken from the 1999 trial balance.

Note that we must first "close out" the operating accounts to net assets to arrive at our ending net asset balance. The net asset balance on the 1999 trial balance provided is the 1999 opening net asset balance. (The opening balance is the balance at the beginning of the period, before the revenues, expenses and transfers for the year have been applied to arrive at the ending, or closing balance.) Our closing 1999 net asset balance will be equal to the total assets less total liabilities at December 31, 1999. It will actually be the "plug" to balance our debits and credits of the assets and liabilities at year end as net assets by definition equal assets less liabilities.

  dr cr
Bank - operating account 350  
Bank - capital account 150  
Contributions receivable 100  
Flower Pin inventory 300  
Capital assets 2000  
Accumulated amortization   800
Accounts payable   100
Bank loan - current portion   130
Bank loan (for capital assets)   500
Deferred capital contributions   400
Deferred contributions - SF   200
Net assets   770

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