In a cash flow statement, “Opening Balance” and “Closing Balance” are not direct entries. Instead, they are labels that indicate the beginning and end points of a specific period or interval.

In a cash flow statement, the typical layout is as follows:

1. Beginning Balance: This is the opening balance of the cash and cash equivalents account at the start of the period (e.g., month, quarter, or year).
2. Cash Inflows: This section includes all the inflows of cash into the business during the period, such as receipts from customers, sales, loans, investments, etc.
3. Cash Outflows: This section includes all the outflows of cash from the business during the period, such as payments to suppliers, employees, taxes, dividends, etc.
4. Ending Balance: This is the closing balance of the cash and cash equivalents account at the end of the period.

To illustrate this:

Let’s say we’re looking at a monthly cash flow statement for January:

* Beginning Balance: $10,000 (the opening balance of our cash account on January 1st)
* Cash Inflows: $20,000 (received from customers and investors)
* Cash Outflows: $15,000 (paid to suppliers and employees)
* Ending Balance: $15,000 (the closing balance of our cash account on January 31st)

So, in this example:

* The “Beginning Balance” is $10,000, which is the opening balance at the start of January.
* The “Ending Balance” is $15,000, which is the closing balance at the end of January.

Remember that these labels are not actual entries in the cash flow statement; they simply indicate the start and end points of the period being reported.