Setting starting balances using a journal entry (unbalanced)

1

Hello, I think I understand that the new and proper way to enter starting balances for bank accounts is by creating a journal entry.

This post by @lubos and some replies in that thread helped steer me in the right direction.

I have two questions:

  1. I initially set the starting balance with a receipt to the bank account. I believe this was the wrong way and this entry needed to be deleted?
  2. After I deleted the receipt, I created a journal entry debiting the bank account with the starting balance. The journal entry has a red notice “Unbalanced.” Is it okay to leave this entry unbalanced or am I missing a step? What would I credit to balance the transaction?

Thank you for your help.

2

Leaving unbalanced any entry is wrong approach, you need to select retained earnings account and put the amount on credit side for balancing the entry.

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3

Thank you!

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