Opening Balance Equity
We received a Question from "Dolfin8613r" in our Online Forum
How would you add a begining balance when you just started the account? What journal entry would you make to zero it out at the end of the year?
OUR RESPONSE
When you setup the Chart of Accounts, it will have a tab there to put opening balance. If you have already set it up, then you would do a journal entry where you credit the account and debit opening balance.
Latest Quickbooks Contest Winners
Return to: Learn Quickbooks Free
At year end income and expenses are zeroed and transferred to income summary. Then income summary is zeroed and transferred to capital along with any owner’s withdrawals