Tuesday, 4 September 2012

Enter Opening Balances



How do I enter opening balances?
Very simply. By bringing a balance from the previous accounting period to the new accounting period.

Is there an example I can see?
Here check out this example on how to enter opening balance in a T account:


From the example above this is how to enter opening balance. A company has a rent account. The rent is €5,000 a month. The company pay only €2,500 for the month and bring the other €2,500 to the next month. So the opening balance is €2,500 for June and the company must also pay the €5,000 for June as well which in total they pay €7,500 for the month.


Check out this video on how to enter opening balances on a computer:


02-Entering Open Balance




Uploaded by  on 7 Jan 2010

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