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Opening Balances

What's the general procedure for entering opening balances?
Enter the balances in the appropriate assets, liabilities , etc., accounts and enter a balancing figure in the Retained Earnings Account?


Posted by Paul Faithfull on Jun 29, 2009 11:35 AM BST

Hi Paul,

Yes, that's correct. Don't forget to also record the initial money invested in the business by the owner: For a limited company this is the "Share Capital" account, for a self-employed person this is "Owner's Capital"

Cheers,


Posted by Mark McLaren (Solar Accounts) on Jun 29, 2009 12:19 PM BST