Owners Equity Account

Posted by Kim on April 3, 2007, 3:42 pm

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We set up a new quickbooks back in October 2006. When entering balances we
used an owners equity off-set account. Quickbooks also used this account
when we entered the year-to-date payroll balances. What do we do with the
balance in this equity offset account at the end of 2006? We do not want a
balance to stay in the account. It was used strictly as an offset account.
If someone could let me know I and my President would be very grateful.
Thanks,
Kim

Posted by Laura on April 3, 2007, 3:49 pm

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> We set up a new quickbooks back in October 2006. When entering balances

> we used an owners equity off-set account. Quickbooks also used this

> account when we entered the year-to-date payroll balances. What do we do

> with the balance in this equity offset account at the end of 2006? We do

> not want a balance to stay in the account. It was used strictly as an

> offset account. If someone could let me know I and my President would be

> very grateful. Thanks,

> Kim

What system were you using prior to setting up the QB file in 10/06? You
should use the Trial balance sheet as of 9/30/06 from the old system as your
starting point. Run the TB as of 10/1/06 in the new file and create a JE
that forces the 2 trial balances to match. That will tell you what the
correct way of clearing the Opening equity balance (OBE) account.