I am having a technical problem using Simply Accounting 2008 (student version). I am creating my own company and entering the accounts in the Chart of Accounts. However, there is a problem with the drawings account. Most equity accounts have a credit balance, but a drawings account has a debit balance. The program reads my drawings account to have a credit balance. How can I make the program read the drawings account correctly as a debit balance? Thanks
To resolve the issue with the drawings account in Simply Accounting 2008, you need to modify the account type to reflect its true nature as a debit balance account. Here's how you can do that:
1. Open Simply Accounting 2008 and navigate to the Chart of Accounts.
2. Locate the account that represents drawings. It might be labeled as "Drawings" or "Owner's Withdrawals" in the equity section of the chart.
3. Select the account by clicking on it.
4. Look for an option to "Edit" or "Modify" the account. This can usually be found in the toolbar or right-clicking on the account.
5. In the account settings, you should find an option to change the account type. Select the account type that reflects a debit balance. It could be something like "Other Expenses" or "Contra Equity."
6. Save the changes, and the program should now correctly recognize the drawings account as a debit balance account.
If these steps do not precisely match the interface of Simply Accounting 2008, please consult the program's documentation or seek support from the software provider for specific instructions on modifying account types.