It is necessary to add the opening balance transaction as a normal
transaction to tally the debit and credit sides of the accounts. Because
of double entry accounting you need debit and credit transaction, so even the
opening balance should have two entries. If you have 1000$ cash balance investment
that mean you have 1000$ equity.
You can add a debit opening balance to an account by debiting the
relevant account and crediting a relevant account.
Example 1: to add opening cash balance
Debit the Cash account by the amount
Credit the equity account by the amount
Example2: To add opening balance of
Debit the Debtors account (Mr. ABC) by the amount
Credit the purchase (PC Parts) account by the amount
You can add a credit opening balance to an account by crediting the
relevant account and debiting a relevant account.
Example 1: to add opening Creditors
Credit the creditors account (XYZ Limited) by the amount
Debit the Sales account (PC sales account) by the amount
Note: if you still have questions please contact the by email.