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aboversite
April 8, 2019
Question

What is the journal entry for Accumulated Amortization as an opening balance? How about for Amortization Expense opening balance? Is it negative?

  • April 8, 2019
  • 12 replies
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12 replies

Anonymous
April 8, 2019

Hello,

 

Thanks for reaching out. These are very interesting questions and I suggest you connect with your accountant to get the most accurate answers for your business needs. With QuickBooks Online, you can give your accountant access to your account in a few easy steps. To do so, check this community article on how to manage an accountant user in QuickBooks Online.

 

If you don't have an accountant, you can find a certified ProAdvisor in your area through this link: https://quickbooks.intuit.com/ca/find-an-accountant/.

 

Let me know if you have any other questions.

arturohudson
May 26, 2020
@-1 wrote:

Hello,

 

Thanks for reaching out. These are very interesting questions and I suggest you connect with your accountant to get the most accurate answers for your business needs. With QuickBooks Online, you can give your accountant access to your account in a few easy steps. To do so, check this community article on how to manage an accountant user in QuickBooks Online.

 

If you don't have an accountant, you can find a certified ProAdvisor in your area through this link:

 

Let me know if you have any other questions.

thanks for your helpful response. All questions answered

Rochelley
April 29, 2019

How was this asset aquired?  Have you already recorded the purchase of the asset?  If so, you would /should have Debited the Asset account, and Credited the Bank account.  Amortization is recorded by setting up a sub or contra-account under your Main asset called Accumulated Amortization.  To record the amortization, you would Debit the Amortization Expense account (which shows up on the P & L or income statement) and Credit the Accumulated Amortization contra account (which shows up on the balance sheet) for the asset in question.

Tammy L
June 11, 2020

I am having a similar issue. I am transferring to online from a very old version of QB and need to enter all my opening balances for the categories I had in that system. Ie Computer Equipment with sub categories of Cost and Accumulated depreciation.  The numbers end up opposite of what they are in my old system and I am not sure why.

Rochelley
June 11, 2020

Hello @Tammy L ,

 

My recommendation would be to not use the opening balance in the account set-up in QBO.   There are some account types where if you follow QBO's directions, you will end up with balances on the wrong side of the equation.  This has been brought to their attention - not sure if or when it will be fixed.

 

Rather, set up your opening balances by posting directly to a journal entry.  If you look at my post a ways up in this thread I have given correct instructions of where you balances should be debit and credit wise.  If you have any more questions, I'd be happy to try and help.  Good luck!

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