[Kelly01]

Can anyone please explain or preferably show me how I incorporate Opening Balances into t accounts?:confused:

Thanks
Kelly

[pready]

You will have your date and Beg Bal with the balance amount either on the left or right side of the T Account. The left side is for your debits and the right side is for your credits. When you close your T account at the end of the period you will balance your account and then draw a horizontal line across the bottom of your T-account, then below the line you will put the date with End Bal with the balance amount on either the right side or the left side of the T-account to signify the ending balnce.

[helemuo]

Opening balances or balance carried forward are either credit or debit. If, for example, your opening balance is coming from Account Receivable ledger, you draw up a T account and write balance brought forward (b/f) in the left hand side and then enter the amount. If you are getting your balances from accounts payable, you do the same on the left side of the T account. The rules of debit and credit are:
Debit Assets, Expenses, and Losses
Credit Liabilities, gains, sales revenue, equity