cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Experienced Member

How to remove Checking balance out of opening balance equity?

 
2 Comments
QuickBooks Team

Re: How to remove Checking balance out of opening balance equity?

Hello, lushgarden1226.

 

Good to see you here in the QuickBooks Community. Allow me to help walk you through on how to remove checking out of opening balance equity.

 

To do this, please follow the steps below:

  1. Click the Gear Icon.
  2. Select Chart of Accounts.
  3. Choose the correct account, click View register
  4. On the filter icon, click the drop-down arrow and type in Opening balance
  5. Click Apply.
  6. If it shows up, click the transaction.
  7. Click Edit.
  8. On the deposit transaction screen, click More at the bottom and choose Delete.
  9. Click Yes

When removing checking out of opening balance equity, you'll need to consult an accountant about the process to ensure your books are accurate. 

 

This will get you on the right track. Feel me in if you have any other questions. I'll be around to help. Have a good one. 

Established Community Backer ***

Re: How to remove Checking balance out of opening balance equity?

@JanyRoseB 

 

You do NOT just delete a transaction  without considering the consequences AND with out considering why the entry is made to start with.  This is accounting, and your actions/recommendations are subject to auditing by the IRS or the state.

 

@ everyone

When you get and follow the directions you get in this community, PRINT the thread to a pdf file and save it.  It will not excuse a mistake in an audit, but you can  at least show the auditor who told you do it that way.

 

@lushgarden1226 

 

IF, if you entered the starting balance for the bank account when you create it, then that entry in OBE is correct.

 

After all starting entries have been entered, OBE will have a balance, then you clear that balanec to owner equity with a journal entry

 

if OBE is positive on the balance sheet

debit OBE for that accounts balance
credit owner equity for the same amount

 

reverse if OBE is negative on the balance sheet