Opening balance- bank balance or trial balance

I hope someone can help me as I am very new to the world of accounting, I have opened a brand new bank account and put in £5000 in preparation for when the bills start to come in, I have gone to the opening balance section in setting and entered £5000 in the first column and put it under current account (1200) as a credit, but then it asks me to put a another entry in underneath which is based on a minus figure, but I do not have any expenditure at all on this bank account / Business as I have not started trading from this bank account / business, so how do I set my opening balance just to show I have £5000 in credit, do I need to put this amount in the trail balance ?

Thank You


Hi @Vincent

We’ll certainly try our best to help! :slight_smile:

Where did the £5,000 come from? For example, was it from your own personal funds?

Also, are you a limited company or a sole trader?

Hello Mathew,

Yes it was from my personal funds and it is a Ltd company

Thank you

In that case the other entry would be directors loan account. And it isn’t a minus figure. Its credits and debits.

Hello Paul
Thank you for your reply, so to be clear, my £5000 funds would go under current account(1200) in the Credit row and the Directors Loan account for £5000 would go in the row showing a debit

Is this correct, do i have it the correct way around

The simplest approach is not to set an opening balance on the current account - instead just manually create a “money in” transaction for £5000 and tag it as a transfer from the director’s loan account. This leaves the DL showing “overdrawn” by £5000 indicating that the company owes you (the director) £5000.

In terms of “credit” and “debit” the nominal entries are actually reversed compared to what you’re used to on bank statements - money in to a bank account is “debit” and money out is “credit”. This feels wrong but it does make sense when you realise that the statement the bank sends to you represents their view of you, whereas what you have in QuickFile is your view of the bank.

Hello Matthew,
Yes it was from my personal funds and it is a ltd company

Thank yoi

Please see @ian_roberts reply for the best method of recording opening balance.

Well this is very embarrassing, I will go with Ian Roberts approach, so my next question is, how do I enter a manual money in transaction, step by step please

At the top of the screen in the bank view is an ‘Add Transaction’ button, which does what it says! Then you tag that transaction as a transfer between accounts.

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