Accounting Tutorial

8. Home Books Accounting - Beginning Balances

Entering Balances

Again refering to the Chart of Accounts to get the balances in each account, we will use a double entry system to establish the being transactions.

First Journal Numbers should be 1 (one). Use the date field to set the date of the Journal Entry. Now enter a General Description of the transactions in field next to Desc. In this case it should be Setup Books.

Now TAB until you are in the first Journal Entry row. The line number should indicate 1.
Click on the Acct Desc field to choose the proper Account.
An arrow appears at the right side.

Click the arrow to get a list of account choices.

Recommendation: use the DR (debit) entry first.
Example: Cash DR $100 AND Difference CR $100

Enter all beginning balances in this manner using Difference Account (9999).

Partial Journal Entries for setup of opening balances.

L# Acct Desc Account Ref Description DR CR Rec
1 Cash 1000 setup Opening Balance 100.00 N
2 Difference 9999 setup Cash - opening 100.00 N
3 Bank 1100 setup Opening Balance 1500.00 N
4 Difference 9999 setup Bank - opening 1500.00 N
5 Inventory 1200 setup Opening Balance 500.00 N
6 Difference 9999 setup Inventory - opening 500.00 N

Use Reports >Verify Balances to check your work.
The last two columns of this report should be equal and the balances at the end of the report for the last two columns should be zero.

Use the TAB key to move from field to field. TAB at the end of the line will move to the next row and advance the line number by 1 (one). TIP: HOME key will move to first field and END key will move to last field on any line in the details grid part of the screen.

Once this is complete you are ready to do daily entries.