Multiple currency setup and unbalanced general ledger transactions

[Nigel Titley <..hidden..>]

My accounts are mostly done in GBP but I have recently set up a EUR
account so that my European customers can be invoiced and pay in Euros.
The invoicing works fine but I've just received the first payment in
Euros. I set up a new account in LedgerSMB but can't find any means of
specifying its currency.

When I tried to apply the payments (from invoices in Euros) to the Euro
account, it wanted an exchange rate, so I told it to use "1". Now my
trial balance is out of balance and it seems to have entered unbalanced
transactions in the General ledger.

I have four questions:

1. How should I have set up the Euro account?
2. How do I make payments into it?
3. How did LSMB manage to generate unbalanced transactions
4. What do I do to recover from this?

Any help would be very gratefully received.

Nigel