When you set up your QuickBooks company, QuickBooks automatically sets up
these two equity accounts for
Opening Bal Equity
QuickBooks automatically creates this account when you enter the starting
balance of your first balance sheet account. QuickBooks uses Open Bal Equity to
ensure that you get a correct balance sheet even before you enter all your
company's assets and liabilities. QuickBooks records the opening balance of
each account in Opening Bal Equity.
You can transfer some or all of the money in Opening Bal Equity to other
This account tracks your company's net income from previous fiscal
years. QuickBooks transfers your profit (or loss) to Retained Earnings at the
end of each fiscal year.
Viewing the Retained Earnings
Transferring money out of Opening Bal
Equity accounts you can create