Member Loans and Salaries

[Jackieb]

OPening Balances

Hi all,

I was wondering if someone could easily explain how to capture opening balances for loan accounts. My current accountant does not know quickbooks at all and I am certainly not an accountant so I don;t understand all that accounting jargon - I just want to capture the opening balance correctly so my accountant can complete his job so I can move on.

Thanks!

[Dave A]

Jackie, if you're starting a new company file, the best way is to work through the wizard.

Otherwise, check the equity accounts to see if an opening balance equity account has already being opened. If not, set up an Equity account called Opening balance equity or something similar. You can then post any balance sheet opening balance entry against this account until you've got all the balance sheet accounts' opening balances captured. (Once you've got the lot, the value of the opening balance equity account should be zero).

On journal entries for loan accounts:
If the loan account is supposed to reflect that the person owes the company money, you debit the loan account and credit the opening balance equity account.
If the company owes the loan account money, you credit the loan account and debit the o/b equity account.

[sterne.law@gmail.com]

In quickbooks when you create a new account it allows you to enter the opening balance.