Entry of the opening balance Retail Double entry bookkeeping with variable chart of accounts

Page: https://excel.hpage.com/bookkeeping.html Playlist: https://www.youtube.com/watch?v=JeP58mdijnU&list=PLKnGGx0Hz5xI The opening balance of each inventory account is the year balance of that account from the previous year. Bank and Opening balance. This entry represents an increase in assets. The balance of the Bank account increases and the balance of the Opening balance account increases. The total amount in the final balance sheet also rises. Privates and Opening Balance. The Private account contains liabilities that were credited to the Bank account. This transaction represents an asset exchange. The balance of the Private account increases, while the balance of the Opening Balance account decreases. The total amount in the final balance sheet also rises. Credit and Opening Balance. The Credit account contains liabilities that were credited to the Bank account. This transaction represents an asset exchange. The balance of the Credit account increases, while the balance of the Opening Balance account decreases. There is no change to the final balance sheet. Merchandise and Opening balance. The Merchandise account includes the amount credited to it from the Bank account. The balance of the Merchandise account increases and the balance of the Opening balance account increases. The total amount in the final balance sheet also rises. Input Tax and Opening balance. The Input Tax account includes the amount credited to it from the Bank account. The balance of the Input Tax account increases and the balance of the Opening balance account increases. The total amount in the final balance sheet also rises. Output Tax and Opening Balance. The Output Tax account contains liabilities that were credited to the Bank account. This transaction represents an asset exchange. The balance of the Output Tax account increases, while the balance of the Opening Balance account decreases. There is no change to the final balance sheet. The opening balance has been correctly recorded if the final balance of the previous year corresponds to the final balance of the New Year.