Prior Period Income and Expenses

[Joojo]

I want to enter transactions for a service provider business for the month of October,in order that we can generate our first set of reports(financial statements) for the month of October 2015

How do I treat expenses and income earned/incurred a couple of months ago i.e. July,August,September-These transactions were never entered into the accounting system.

Do they have to be ignored because of the accrual/matching principle?

The expenses are on sundry materials and cleaning agents etc. i.e. nothing CAPEX(Capital Expenditure)

 

[Fidget]

You can do one of two things:

* Post the transactions into the relevant periods for July - Sept
* Post the total of each item July - Sept as an opening balance in October if October has to be the starting month the first set of accounts