Adjusting an opening balance

[newview]

As I was going through some of our reports I noticed that I did not enter a beginning balance for a loan that we took out last year. What is the proper journal entry to adjust the year start balance (since I can't change the beginning balance as it was last year)? I'm thinking that I need to Credit the liability account but am unsure as to which account I debit????

[JohnDMeyers]

I am assuming you deposited the loaned money into one of your bank accounts as cash.

Therefore, the bank account is the DB account.

For example:
DB 01-1110-000 checking $loan
CR 01-2110-000 liability $loan

I'm pretty sure your bank account will not reconcile without this entry.

If you made some other correction entry to "fix" your bank account last year, then you can adjust your equity account as the other account instead of your bank account.

For example:
DB 01-3110-000 unrestricted net assets $loan
CR 01-2110-000 liability $loan