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Evo-ERP and DBA Classic >> Accounting >> New Company after bankruptcy
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Message started by RodRivero on 09/01/04 at 04:57:33

Title: New Company after bankruptcy
Post by RodRivero on 09/01/04 at 04:57:33

Hope I can get some help for this. Our company filed for bankruptcy on June 21st. The court order was that we have to have two separate records for the company books as of the filing date and after the filing date. What we did was to create a new company from scratch, without any beginning balances or transactions hoping to later on enter the beginning balances as of 6/21/04. However, I believe we made a mistake because now I'm having problems reconciling the checking accounts. Also, how do I enter the beginning balances as of 6/21/04 and make it work for the year end (6/30/04) and on.
Maybe someboy went thru this bankruptcy process and have some ideas.
Thanks

Title: Re: New Company after bankruptcy
Post by Lynn Pantic on 09/02/04 at 10:45:44

I am not familiar with any specifics relating to bankruptcy but I have split companies when they changed from S-Corp to LLC or some such and the premise is presumably the same. A new company is created that is a copy of the existing company as of the startup or changeover date, then the GL is cleared so new beginning balances can be entered. Sounds like that is what you did which is fine.

If you want to beging reconciling subledgers to the GL before you have the final beginning balance numbers as of the change date, you could make a GJ as of that date posting the accounts you know (typically AR, AP, Cash, possibly Inventory & WIP & RNI) and posting the other side to some temporary suspense account. Then, when you have the full balanced entry for the startup, enter the rest of it and it should offset what is in the suspense account.

To reconcile the checking account, you can manually enter the correct beginning balance into AD-B for the first reconciliation (which will be a split between the 2 companies assuming that you are still using the same bank account.)