Quicken & Other Budget/Accounting Software/HB

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Question
QUESTION: Hi,

I have entered correctly the opening balance into the respective accounts now the historical balancing appeared as -2,700,580.00.

How to clear this historical balancing to zero value?

ANSWER: Hi FA

You might have missed a step.
Here is an example for you to help you compare your entries to the one below

Lets assume your opening cash in bank per books was $250.00

A. Balance per bank          $350.00
B. 1 deposit in transit       100.00
and 2 outstanding checks
C. #4567  for $175
D.  #4568  for $25          -200.00
Total per books          $250.00

What I recommended was to create a Journal entry that removes the
$250  from the trial balance
Debit Opening balance equity   $250
Credit  Cash in bank          $250

Then create an 1 entry for each of the items in A through D above, all posting to
opening balance equity.

Your ending balance in opening balance equity would be Zero
You are now able to reconcile the individual outstanding elements of your
bank rec next month.


Review your entries and make sure all of them posted to the account opening balance
equity.

Linda Saltz, CPA
Advanced Certified QuickBooks Advisor
http://www.qbalance.com

---------- FOLLOW-UP ----------

QUESTION: We don't have any income and sales, our operating fund (not income) came from the parent company. The historical balancing appeared as a positive amount.

I just don't know how to clear the historical balancing.

Answer
Hi FA,

You are going to have to compare my example with your true numbers.

In my example the bank balance per the trial balance (books) was $250.


My 1st step was as follows:


To create a Journal entry that removes the
$250  from the trial balance

Debit Opening balance equity   $250
Credit  Cash in bank          $250

Did you do this as your first step? If you had, your bank balance would be
at zero and "opening balance equity" would now have $250

My second step was to enter the banking transactions (A through D)
You said you posted to "respective accounts". Im not sure what that means
but my instructions were to post  to "open balance equity".  

Once complete open balance equity returns to a zero balance.

Please review your postings and make the adjustments needed that will
land all adjustments to opening balance equity. We do not want to affect
any accounts other than cash in bank and opening balance equity.


Linda Saltz, CPA
Advanced Certified QuickBooks Advisor

Quicken & Other Budget/Accounting Software

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Linda Saltz, CPA, QBalance.com

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QuickBooks best practices, troubleshooting, accounting, tax We have over 70 pages of website content about QuickBooks tips, running a business, tax and business startup at http://www.qbalance.com

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Accountant and CPA over 20 years. Specializing in accounting software for over 12 years, Certified QuickBooks Pro Advisor, QuickBooks seminar instructor since 1997.
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