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

Thanks
Kelly

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.

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