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info475
Level 1

What is definition of openning balance equity and how we close in closing year

 
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Best answer September 26, 2019

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Rustler
Level 15

What is definition of openning balance equity and how we close in closing year

OBE is a holding account that is used to accumulate the opening balances of the accounts when you set up QB for a company.

After all starting balances are entered, then you close OBE to the equity account with a journal entry

debit OBE
credit owner/partner equity
credit owner/partner equity (if there is more than one partner)

View solution in original post

1 Comment 1
Rustler
Level 15

What is definition of openning balance equity and how we close in closing year

OBE is a holding account that is used to accumulate the opening balances of the accounts when you set up QB for a company.

After all starting balances are entered, then you close OBE to the equity account with a journal entry

debit OBE
credit owner/partner equity
credit owner/partner equity (if there is more than one partner)

View solution in original post