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June 25, 2022
Question

Had a bk bal of £3k but no bal in equity. I inactived the bk and now have a -3k in eqy. Can i reset all to 0easily? I tried purgecompany but the acc is >60 dys old

  • June 25, 2022
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1 reply

June 25, 2022

I know how you can fix the negative balance in your account, @Treasurer2312.

 

Based on your scenario, it's possible that you're unable to enter an opening balance yet.

 

 If you're account is already reconciled, I suggest consulting your accountant to avoid messing up the account. If not, follow these steps to create a journal entry to resolve the negative amount: Note: If applicable, reactivate the bank account you deactivated.

 

  1. Click on the + New button.
  2. Choose Journal entry.
  3. Type in a date before the oldest transaction in the account. This will serve as the opening balance date.
  4. Click on the dropdown menu to select the account you want to add the opening balance for in the first row under the Account column.
  5. Enter a note in the Description field so you know what the journal entry is for.
  6. Click on the dropdown and select Opening Balance Equity or Retained profit balance forward in the second row under the Account column.
  7. Use your bank statements to add the opening balance. Fill in the balance of your real-life account for the date you picked as the opening balance. You'll need to enter both a debit and a credit to keep things right.
  8. Add the debits and credits based on the type of account you entered on the first line.
    • Asset (savings and checking) and expense accounts: Fill in the opening balance in the Debit column in the first row. Then, type in the same amount in the Credit column in the second row.
    • Liabilityequity, and income accounts: Fill in the opening balance in the Credit column in the first row. Then, type in the same amount in the Debit column in the second row.
    • Accounts Payable: In the first row in the Name field, choose the supplier you owe money to. Add the opening balance as a credit to increase the balance. Or fill in the opening balance as a debit to decrease the balance. Then, add the same amount in the opposite column in the second row.
    • Accounts Receivable: In the first row in the Name field, choose the customers who owe you money. Add the opening balance as a debit if you want to increase the balance. Or fill in the opening balance as a credit if you want to decrease the balance. Then, add the same amount in the opposite column in the second row.
  9. Once ready, click on Save and close.

 

I'm adding this guide for more information about the process: What to do if you didn't enter an opening balance in QuickBooks Online.

 

Furthermore, you can make use of this reference if you'd still want to start over and purge company: Reset your QuickBooks Online account within 90 days of signup.

 

Keep us updated by replying to this thread. We're open 24/7 to assist you further if you have other concerns regarding this matter or QuickBooks in general. Take care!