Historical balancing account reconciling

Hi Morea 

The primary accounting equation is Assets = Liabilities - Equity. When setting up your accounts in AccountRight and entering opening balances should the accounts not balance then the resiudal amount will be added to the Historical Balancing Account to balance the accounting equation.

Normally you would enter those opening balances through the Accounts>>Accounts Lists>>Selecting the appropriate account and updating the opening balance field. Should you have incorrectly set up those accounts, updating opening balance field on the account would be the recommendation, however, you could use a journal entry to record both the initial and/or correction if necessary.

In terms of reconciling, if you entered the opening balance of the account via the Opening Balance on the Accounts Lists it will impact the Calculated Statement balance of the account, there will be no transaction for that impact. If you did a reversal or journal entry or another type of transaction to that account there would be a transaction listed in the Reocncile Accounts window which you can tick off to be included in the reconciliation. Depending on the account type that account and type of transaction it would increase and decrease that calculated statement balance.