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Starting balances for bank accounts and loans

NSIKathieNSIKathie Member Posts: 6

I have entered all of my beginning balances with the exception of my bank accounts and loans. I read the instructions on how to do this, but am a bit confused. Is there a reason why the beginning bank balances are entered as deposits and loans as withdrawals? I would much prefer simply entering them as a journal entry, but then I don't want to get down the road a piece and find out that doing it that way causes problems later. Thank you.

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Comments

  • MikegMikeg Member Posts: 995 ✭✭✭

    @NSIKathie,
    I always enter beginning balances via journal entry. Opening cash balances would be a debit and loans would be a credit. The difference would go to owner equity to make the entry balance.

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