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-   -   How To Deal With Opening Balances And Related Journal Entries? (https://www.askmehelpdesk.com/showthread.php?t=837825)

  • Mar 19, 2018, 07:16 AM
    kingandsona
    How To Deal With Opening Balances And Related Journal Entries?
    If you need to use an opening balance to setup new accounting for an existing business (like a credit card in use, but they only want transactions entered for the current year), do you have to create a journal entry later to clear out the "opening balance" category? I thought Opening balance should always be zero, but how do I get those amounts out of there?

    So a credit card with transactions in December & January, statement date is Jan. 10; I need to reconcile it without bringing in all the transactions from December. So do I add those and create an "opening balance" with the sum? Then will it reconcile properly when I add all the January transactions?

    Then, won't the balance sheet show that sum in the Opening Balance Equity account? How do I make a journal entry to remove that?
  • Mar 25, 2018, 04:47 PM
    paraclete
    You just bring all the opening balances in in a journal detailing them. Since what has happened previously is not your concern and what you are dealing with is net equity

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