Why does my Trial Balance Report not match my previous version after the upgrading to QuickBooks 2002?

Legacy KB ID: 1207

Question

After upgrading from a previous version of QuickBooks to QuickBooks 2002 my trial balance now shows a new ending balance, why is this occuring?

Answer

As you may notice, the QuickBooks 2002 tax accounts look slightly different from the version 8 tax accounts. QuickBooks 2002 merges your tax sub-accounts into the one main tax account (Called “Tax payable”). As a Result, your trial Balance will now appear slightly different to the trial balance you printed off in your previous version of Quickbooks.

For Example: Here is a trial balance printed in version 8.

My Trial Balance Company

Trial Balance

01/05/02

As of May 1,2002

May 1, 02

................................................................Debit...............Credit

My Bank Account...................................5,255.00

Accounts Receivable.....................................0.00

Tax Payable.................................................25.00

Tax Payable GST: Tax collected....................................500.00

Tax Payable GST: Tax Paid.........................20.00

Income.........................................................................5,000.00

Expense.....................................................200.00

TOTAL....................................................5,500.00.......5,500.00

And here is the trial balance from the same file upgraded to QuickBooks 2002.

My Trial Balance Company

Trial Balance

01/05/02

As of May 1,2002

May 1, 02

................................................................Debit..............Credit

My Bank Account.................................5,255.00

Accounts Receivable..................................0.00

Tax Payable..................................................................455.00

Income........................................................................5,000.00

Expense...................................................200.00

TOTAL..................................................5,455.00........5,455.00

Why is there a difference?

The difference is a result of the Tax Account Merge. In QuickBooks 2002 you will only have a figure in Tax payable as opposed to figures in Tax Paid and Tax Collected in version 8

In QuickBooks 2002 your Tax Payable Account will have a New Figure in it. This figure comes from ALL your version 8 Tax Accounts and can be calculated as follows.

If (In version 8) your (Tax) Credits are higher than your debits then:

THE NEW TAX PAYABLE AMOUNT = Sum of all version 8 tax Credits – (Minus) All version 8 Debits.

OR

If (In version 8) your (Tax)Debits are higher than your Credits then:

THE NEW TAX PAYABLE AMOUNT = Sum of all version 8 tax debits –(Minus)All version 8 Credits.

In our example:

Our credit figure ($500.00) is higher than our debit figure ($45.00). So:

$500 - $45 = $455

As we can see on our QuickBooks 2002 Trial balance there is a credit of $455.00 (THIS IS CORRECT).

But why does this effect my ending Trial Balance totals?

Because you no longer have “Tax Paid” and “Tax Collected” accounts, the overall trial balance debit or credit will be different by the amount of the 2 tax accounts that no longer appear on the 2002 trial balance.

If you look at the smallest figure(s) on your version 8 Trial Balance (This may be the sum of the 2 debits or credits, or may be the ONE credit or debit figure), this figure will be the difference between version 8 and 2002.

In our example: The Debit column has the smallest figure. So we will add the two debits. $20 + $25 = $45

We can see that the difference between version 8 and 2002 is $45.00

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