How and when to use ....
wm_o_o_o at yahoo.co.uk
Sat Oct 22 15:39:33 EDT 2016
On 21/10/2016 20:29, gargameow wrote:
> Hi Aaron,
> Thank you for your reply.
> I understand what you mean now.
> Just to summarize, by Opening Balances, meaning is a kickoff to key in my
> existing financial status into the software.
I think we know that you are just starting, welcome.
> So if I owe money to someone or
> institution, I have to debit my Opening Balances and transfer it to
> Liabilities accounts.
Yes, a liability (money you owe) should be on the credit side of your
balance sheet and on the debit side of your equity (outside) account
> If I have money in bank or cash, I will credit my
> Opening Balances to Assets accounts.
Yes or No, you want the Asset to show the balance of your bank account
and the Equity to show were it came from. The bank's view (what you see
on your statement from the bank) is usually the opposite of yours.
> Think I got it right now.
It is best if you take a few moments to think this through. Don't let
anyone rush you.
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