I’m trying to open new accounts taking my past year closing balances.
When I create bank and cash accounts, it gives me option to enter opening balances but in Chart of Accounts this option is missing.
How to enter opening balances for those accounts?
Use Journal Entries tab to enter opening balances for all your accounts.
But when I do journal entry, it is debit/credit entry but to enter opening balance for fixed asset, it is one sided entry.
So how I do these entries?
In a double-entry accounting system, all transactions will have two entries. When you create a new bank account, Manager creates the second entry behind-the-scenes. Let’s say you create a new bank account with a starting balance of $10. What actually occurs is that Manager debits the bank account for $10 and credits the “Opening balance equity” equity account for that same $10. You can see that credit to the equity account if you run the general ledger report.
When you are manually adding starting balances to, say, fixed asset accounts, you would do it like this: create a journal entry that debits the fixed asset account and credits the “Opening balance equity” account for the same amount.
@gabe is correct. And for that reason, I never even liked Starting balance field when creating new bank account.
Anyway, the latest version (14.2.6) now includes Opening balance field when creating or editing accounts in Chart of Accounts. You can still set opening balances through journal entry as suggested above or just use Opening balance field on general ledger account form which will do the same.
thanks sir i understand the double entry but when we are opening new year account from past years balance sheet or trial balance there will be only one side balance for each entry so how do i open a new account balance i guess there must be a way which i am missing out.please guide me thanks