Opening Balance

[Former Member]

Hi All,

I have a doubt regarding opening balance. At the time of entering opening balance we will give G/L offset account for Items or BP or G/L balances.

My query is how this offset account get nullified?

Regards

Shashi

[Former Member · Accepted solution]

Please check this thread to have some references:

Thanks,

Gordon

[Former Member]

Hi Shashi,

The opening balance which you upload is either from Trial Balance or Balance sheet.

As you might be knowing that either Trial Balance or Balance Sheet always have Debit balance = Credit balance, unless their is difference due to mistake.

So, when you upload debit balances then you credit offset account & when you upload credit balances you debit offset account. In this way, your off set account get nullified.

Hope this will help you in understanding issue.

Regards,

Abhishek

Edited by: Abhishek A on Oct 15, 2008 6:44 AM