I recently had to put in a openning balance in the VAT liabilty account (due to what was owing to HMRC at the end of the accounting year, this is our first year of using solar) This effected the balancing account and it is now showing that amount. While I realise that solar uses double entry bookeeping and that for every credit entry there has to be a debit to balance it, I did not think that entering a opening balance on a account would effect the balancing account. When does the balancing account become zero again.
Hello Peter,
To make the opening balance of the Balancing Account zero, you will need to change the opening balance of on of the other accounts. For example, say the opening balance of the Balancing Account £100 - if you set the opening balance of the 'Retained Earnings' account to £100, the balancing account will change to zero.
Regards,
