When should a beginning balance be used for a new account, and what date should be used for the beginning balance?

When should a beginning balance be used for a new account, and what date should be used for the beginning balance? Using Quickbooks online

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Expert Solution

Generally New Accounts do not have opening balances. However in following situation, new accounts can have opening balances:

a. When any advance is received from debtor ,

b. When any advance is paid to creditor.

c. Opening Balances brought forward transferred to another account at beginning of the year.

The date when advance is paid or received shall be the date of recording new account.

ekkarill92 answered 1 year ago

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