For creating an opening balance journal entry for my bank account, how do I determine whether I should debit or credit the bank account or opening balance equity?
Trying to fix my opening balance for my bank account connected to QBO, I want it to match the statement beginning balance for JAN 1 2017. Instructions I found said to create a journal entry but wasn't clear if I should debit or credit the bank account, just some vague remark about how it depends on the account type... I have no idea what that means. Also the instructions said that I should be able to view the transaction in my bank register and mark it as reconciled so that when I go to reconcile for the first time the opening balance will be correct.
The debit would be if you had a positive balance in the b...
The debit would be if you had a positive balance in the bank. Credit if you had a negative (overdrawn) balance in the bank.
When you enter opening balances, you generally enter the balance sheet of the y/e file you are starting new in qbo. You do not use opening balance equity fund. It will populate there until you have completed your opening entry. At that time, it should show as zero.