Correcting a Debit Balance in Vacation Payable Account

Question

Hello, 
 I am working on the year end and have found a debit balance in my Vacation Payable account that has been carried over for several years on the Balance Sheet. I know this should be a zero balance but I'm not sure how to correct this. Could someone please help me with the adjustment entry? 
 Thank you!

Keith L · Accepted Answer

Hi Hopeful, 
 You may want to double confirm where this debit balance (negative) of Vacation Payable comes from by going to each employee record, Income tab and check vacation owed. It can be from 1 employee or more than 1 employee. 
 After you figure out which employee has the negative vacation amount, you can do an adjustment paycheque by selecting this employee and zero out everything first. Next, make the paycheque "Enter Taxes Manually". Then, go to Vacation tab, key in an amount to make Vacation Owed zero. The entry will credit Vacation Payable and debit Wage Expenses. 
 Hope this helps.

Keith L · Answer

Hi Hopeful, 
 No, you do not have to. All you have to do is to follow the suggestion from the my previous post and adjust the vacation payable amount back to zero. 
 Hope this helps.

Sage 50 Canada

Correcting a Debit Balance in Vacation Payable Account

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