Want to Nullify starting Balance Equity

I have Some Stock in Inventory which has some Starting Balance and Qty in that.
But now it’s displayed in Each year Balance Sheet. The amount was equally Negative as Retained earnings. So I want to nullify that by Journal entry or any other way if possible.
Right now it’s not possible by Journal Entry. Please tell the best method to nullify it.
Screenshot was attached for reference.

Starting balance equity is an account created automatically to balance your books when you have done something incorrectly. It should never be there. A typical example would be when you enter starting capital account balances for partners, but do not have any money in your bank account or inventory on hand. Where did that capital go?

You cannot post any transaction directly to Starting balance equity. So you must find out what was wrong at the beginning. Create a balance sheet for your first day of operations and start looking there.

Yes I know that it’s created automatically. In staring and adding the inventory items I Put some quantity and its amount into the manager. And Because of that starting balance Equity displayed in Equity account.
If there are no other options to change that was also Ok for me because the Retained earnings will be exactly the same negative amount. so its nullify. but it’s just displayed in each balance sheet.

Right there is your problem. When you add starting balances for inventory, you have added debits in assets. Therefore, you must add credits in either liabilities or equity to balance the books. Most likely, you should have added some form of equity, possibly in the form of prior capital contributions. That inventory had to have been paid for in some manner.

You have missed the most important aspect of starting balances. They must carry forward the ending balances of your previous accounting system. If your previous system had nothing to balance the assets of inventory, it was wrong, and you need to go back to correct it.

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True. At that time I am not much aware of the accounting system.

I started by accounting and Inventory management only by the Manager. Do not having any previous accounting software. and I find the perfect accounting with inventory management in Manager.

ok I will try that. And I am not an accounting or commerce background that’s why this problem happens to me that I know. thanks for Info. And I want to tell that the manager has done the excellent work for beginner also. Love the Manager. :heart_eyes:

Then you shouldn’t be using Starting Balances at all. At the start of the first day (07:00) all your account balances would be nil.

Therefore, was the inventory purchased after the start of the first day, or was it items already in your procession.

If in your procession, then enter them as starting balances, but you also need to enter a starting balance credit for the exact same amount into an Equity account.

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