USA Did not record opening balance when switched to new accounting system

[LindaSD]

When the company switched to a new accounting system two years ago, they did not record the opening balance for a liability. They have not been able to reconcile to the bank statement this whole time.

Prior fiscal periods are now closed in the accounting system and cannot be adjusted.

How do I record the opening balance at this late date?

 

[BIG E]

Something is not clear.
How does a discrepancy in a liability account not make a bank reconciliation reconcile unless it was a deposit to the general ledger that was not entered? And this was let go for 2 years? What showed up on the business tax return for balance sheet information - or was that not shown because it was under the threshold to report?
Seems like an adjusting entry is necessary:
DR Cash
CR Liability Account

 

[LindaSD]

It does not reconcile to the bank statement for that liability account. It was a credit balance that was not brought over. Don't know what happened 2 years ago. I didn't work here. Just trying to fix it now. Is it acceptable to DR equity / CR liability account?

 

[BIG E]

A bank reconciliation reconciles Cash. Not a liability account.
Unless you're talking about a loan account created through a financial institution such as a bank or finance company.
So I still don't know what you're talking about.

 

[LindaSD]

How do I record the opening balance at this late date? I cannot re-open prior period books.

 

[BIG E]

Until you describe the source of the liability there is no accurate way of answering your question, no matter how many
times you repeat it.
I would only GUESS - that if it came from a bank source such as a bank loan or credit card debt where you receive a monthly
statement showing the monthly activity changes from one month to the other, the best way would be to
DR Retained Earnings
CR Liability Payable