Difference in Opening Balance in accounts

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This discussion addresses the correct method for entering opening balances in Tally ERP9 when starting accounting for the first time. It clarifies whether to debit the bank account and credit the capital account on the first day of the financial year, or if simply creating a bank ledger with an opening balance is sufficient. The advice given is to create ledgers with opening balances as of April 1st to ensure an accurate balance sheet.

PARVATHY R

PARVATHY R (Querist)
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20 April 2023 In a going concern business, When started accounting in Tally ERP9 for first time, Whether the entry on the first day of financial year (i.e 1st April) for opening bank statement by debiting the bank a/c and crediting the capital a/c is correct way of accounting or simply creating bank ledger with opening balance and leaving the balance sheet as difference in opening balance on liability side is ok. What will be the entry for opening balance of bank statement? Please guide.