I have a wages cheque (for myself!) which was drawn 30.6.16 prior to Manager start date 1.7.16 and presented (banked) on 6.7.16. How shall I categorize this expense as it relates to last financial year? so I don’t need it in the accounts at all. It is included in last year’s figures, so can I just post it to Owners Equity as if it were a personal expense?
This depends on what bank account opening balance was taken up on 1.7.16.
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If the balance taken up was the BS figure, with the payment already included in the cash payments, then do nothing as its only an unpresented cheque.
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If however the balance taken up was the Bank Statement figure then you need to process it. Which means for 1.7.16 you would also have had an opening balance to be taken up for “unpaid wages”
If you have imported a bank statement and (1) above applies, just delete the imported transaction as it just a duplication of a pre 1.7.16 payment
OK - the bank account opening balance was the Bank Statement figure as I had no BS before.
I imported the bank statement and (2) applies.
So I set up a liability account called unpaid wages or unpaid expenses (as there was a second cash cheque drawn pre 1.7.16 for an assortment of small cash dockets) with credit opening balance of 2 cheque totals and then allocate the 2 cheques to it, which will then cancel it out?
Correct, but if you open a specific unpaid expenses account and have no future need for it, then currently you are stuck with that account, so for these payments, post them as you suggested to Owners Equity, who’s opening balance would have been adjusted to cater for the unpaid expenses opening balance.