Phreesoft Support Forum

I just learned -the hard way- that my balance sheets have been incorrect.
When my bank account balance has been negative (due to allowed overdraft), the program presents the bank balance on the wrong side of balance sheet. If negative amount, it should be moved to the other side. Maybe the program could in the future propose/ask to which account it will move the negative amount in a case like this for balance sheet presentation?
This change will have a dramatic result at the balance sheet bottom row. No other problems encountered while working with negative bank account balance.

I'm not sure what you mean by 'wrong' side of the balance sheet? Do you mean the trial balance report? or the Balance Sheet report? The balance sheet report should should a negative balance in the cash account, there are no 'sides' to a balance sheet. There is, however, sides to the trial balance for which a negative balance will show up on the other side (as a credit instead of a debit). All the rest of your balances should show the proper balance even if negative.
Dave

Had time to look at this issue more closely, this is how the program behaves:
Correct, the General Ledger Trial Balance Report presents correctly the negative bank account balance as Credit Amount (and not as Debit Amount). My problem is not related to this report.
On the Balance Sheet Report this "transfer" of a negative bank account balance does not take place from Total Assets "side" to Total Liabilities & Capital "side".
This created an easy to spot error: On my Balance Sheet both the "Total Assets" and "Total Liabilities & Capital" amounts were negative, say -1000, and the correct amount for both was positive, say +10000. - One glimpse by a qualified accountant and I had a lot explaining to do I will discuss this more later with an accountant.

A qualified accountant confirmed this. A negative bank account balance must be moved from Assets to Liabilities for a Balance Sheet report. At the moment the Balance Sheet report presents false information [when bank account balance is negative] .

The specific account to use will depend on the nature of bank account and its terms. The most likely candidates to receive the negative balance (on the Liabilities) are "Other Current Liabilities" type 22 account and "Long Term Liabilities" type 24 account.

Maybe the program could in the future propose/ask to which account it will move the negative amount for balance sheet presentation or some easy solution. To get the bottom row correct would suffice in short term.

Maybe this is Bugs topic now.

Perhaps it should be represented this way in your country. In the US, I checked with a qualified accountant and here it should be shown as a negative cash amount. Not a bug but a difference of opinion. Anyway, this looks like a similar locale issue similar to your request for a subtotal on the income statement. I'll see what I can do.
Dave

Try this.
Dave

Very pleased: Very good implementation. Makes an easily readable Balance sheet. As I noticed this issue, I did not know this was a localization issue. But it really is due to different accounting practice/ regulations - how to handle this special case. Thanks for clearing this one.