Opening entry in accounting refers to the primary entries of business at the beginning of each fiscal year or the beginning of its establishment. It involves the business’ assets, liabilities, and equity that are stated in a balance sheet. Its function is to assess where the business is at present with regards to financial or accounting status.
How to: Opening Entry with Examples
Here, two cases of opening entry will be discussed: (1) a newly-established business and (2) a business’ opening entry in a new fiscal year.