Setting Starting Balance for Owners Equity

Kris

Hi, I'm trying to set the opening balance for the owners equity of an established business. I don't want to change the balance in another account - how do I do that? (set the opening balance for owners equity only).

James_Hudson

Hey Kris, in double entry accounting it's not possible to affect one account without another being affected as well. Because credits must always equal debits, in order to increase the balance of Owner's Equity (credit) we must debit one or more other accounts.

If your Owner's Equity exists in a bank account, then this amount should be added as a starting balance transaction .

If it exists in the form of other assets, then you can always record your Owner's Equity and assets by creating a journal transaction that debits the asset account and credits Owner's Equity.

Hope this helps!