Final answer:
True, When using a General Journal Entry to record opening balances in accounts, it is true that Opening Balance Equity is used to balance the columns. This is part of the initial setup of ledger accounts and ensures the accounting equation is balanced.
Step-by-step explanation:
When recording opening balances in accounts using a General Journal Entry, it is true that we typically use an equity account called Opening Balance Equity to balance the columns. This temporary equity account serves to offset the assets, liabilities, and equity being entered into the books for the first time, such as when a new company is set up or when a company transitions to a new accounting system. This Opening Balance Equity is then typically closed off to the main equity account after opening entries are completed and verified.
Note that, in practice, the Opening Balance Equity account is part of ensuring the accounting equation (Assets = Liabilities + Equity) remains in balance during the initial setup of the ledger accounts. Afterward, the balance in the Opening Balance Equity should ideally be zero once the opening balances of assets and liabilities have been matched against equity.