How To Use A Journal Entry To Enter What if your Opening Balance?

Answer 1

To record your opening balance in a journal entry, first identify the accounts involved, typically the cash or bank account and the equity account. Create a journal entry that debits the cash or bank account for the opening balance amount and credits the equity account (such as retained earnings) for the same amount. This ensures that your accounting equation remains balanced, reflecting the initial financial position of your business. Finally, date the entry appropriately to indicate when the opening balance was established.