Opening account balance

twinkle.baker1's Avatar

twinkle.baker1

07 Jul, 2014 08:28 PM

Hi
we've just started our business and have opened our account with a sum of money. When i have entered this amount on Easybooks (to match with our bank statements) i have entered it under "Other Income", but when i did a 'trial balance report' this amount is showing up under 'Opening Balances' which i read means there's an error? Could you advise me the correct way to enter this in Easybooks please?
Many thanks

  1. 1 Posted by twinkle.baker1 on 07 Jul, 2014 08:35 PM

    twinkle.baker1's Avatar

    (i'm using the MAC app (direct download from website)

  2. Support Staff 2 Posted by Admin on 09 Jul, 2014 10:00 AM

    Admin's Avatar

    Hi Michelle,

    Starting out is the most exciting time!

    If you've entered any opening balances these should all balance. If you've just started you'd probably leave all the opening balances at zero. Quick tip for you if you can't find all the accounts you've set opening balances for: run a Trial Balance and set a date in the past before the first transaction. This will show up any accounts you've set a balance for.

    When you start out you probably want to have some money recorded in the bank account but owing back to you as your initial investment. If you have an account under Equity called "Owner share capital" you can use that one. Just add a transaction between it and your bank account. It's easiest to do this from the bank account because you can choose the Transaction Type more easily as "In (Received)".

    For more information about the basics of accounting I recommend Anthony Rice's book "Accounts Demystified" which is available from Amazon.

  3. 3 Posted by twinkle.baker1 on 09 Jul, 2014 03:47 PM

    twinkle.baker1's Avatar

    Thanks for your help Mathew I,ll give it a go
    Best wishes
    Michelle

    Sent from my iPhone

  4. 4 Posted by twinkle.baker1 on 09 Jul, 2014 10:00 PM

    twinkle.baker1's Avatar

    Hi Mathew
    Thank you for your help, but I couldn't find an account called 'Equity' or an 'owner share capital' account? The only one i could find which sounds similar is 'Share Capital' under the account heading 'Net worth/Capital'? So, I removed my original transaction from 'other income' and entered the amount instead into the 'share capital' heading (and used 'bank account' as account 2). However when i did a trial balance is still showed the amount as 'Opening Balances' as it had done before, so i'm a bit confused!? (i will definitely have to get that book you suggested! :-))
    Many thanks
    Michelle

  5. Support Staff 5 Posted by Admin on 10 Jul, 2014 08:59 AM

    Admin's Avatar

    Hi Michelle,

    It sounds like you still have some opening balances set somewhere. The fact that the line "Opening Balances" appears on the TB indicates an error.

    Run a Trial Balance and set a date in the past (1 Jan 2000). This will show up any accounts you've set a balance for. Go back to the Accounts list and set the values back to zero. Then check the TB shows zero (or just the amounts you've entered as transactions).

    You should probably check things out with your accountant. Even if you don't intend to use one regularly it will save you a lot of time and money in the long run to just get things set up properly.

    Mathew

  6. 6 Posted by twinkle.baker1 on 10 Jul, 2014 10:25 AM

    twinkle.baker1's Avatar

    Hi Mathew
    All sorted, thank you! There was an opening balance set up which I had forgotten.
    Thanks again for your help
    Best wishes
    Michelle

    Sent from my iPhone

  7. Admin closed this discussion on 11 Jul, 2014 07:42 AM.

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