Entering cost of land and building purchased in the past

Question

I asked this before, but didn't get an answer. Hopefully I'll catch someone's attention this time. :) 
 We are a small church that started using Sage last year. When entering historical data, I used numbers for the land and building assets that had been used by previous treasurers. I've since learned that those numbers, being the MPAC assessment and insurance values, are incorrect accounting and did some digging in our records to find the purchase price of the land (in 1997) and the cost of the building (we built it in 2002-2003). 
 I managed to get rid of the incorrect figures, but I don't know how to enter the correct numbers since these are old transactions and I don't know how to balance the information. 
 I'd really like this to show up correctly on our balance sheet that will be submitted with our T3010. Help, please! :)

Alwyn · Accepted Answer

It might be under payroll, Cheryl, but I will take a try at responding. 
 Your entry will be a debit to Building (Asset), a debit to Land (Asset) and a credit to Retained Earnings for Prior years. This account may be referred to as Net Assets for Prior Years. The notes to the Balance sheet should indicate this as a correction and that depreciation has not been taken by the congregation up to 2013. 
 HTH

Sage 50 Canada

Entering cost of land and building purchased in the past

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