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Level 1

Journal Entries - Double Credit

Hey Everyone! 

I noticed that we have two journal entries. The first one was created due to a vehicle trade in for a new shop vehicle. The vehicle account - fixed assets (debited the amount of the vehicle). The Auto Loan account -(Liability) credited the amount of the vehicle. 

Another Journal entry was created 27 days later. Auto Loan account credited again for the same amount and then Opening Balance (debited) the same amount. 
When I asked about it and why they had credited the account twice, I was informed you can zero out the opening balance equity account (debited), however, wouldn't you just void/delete the journal entry?

Zeroing out the Opening Balance Equity Account (debit) wouldn't fix the issue anyways being the Auto loan account (credit) is credited twice. Basically it is saying in the Auto Loan account we owe twice as much. 

Please help! I am still learning so much on QuickBooks Online and some things can be just so confusing.

1 Comment 1
Level 15

Journal Entries - Double Credit

Delete the second journal entry

based on the journal entries you mention, there should be nothing posted to OBE

but if there is an OBE balance then it needs to move to equity


opening balance equity is an account intuit created because they did not understand how to do owner equity for multiple owners, so they lump things into OBE


Do a journal entry for the amount in OBE

debit OBE

credit owner #1 equity his share

credit owner #2 equity his share

etc etc

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