Retained earnings balance VS P/L balance

1

Hi Managers,

Thanks for always helping

My year’s P/l (1/1 til 31/12) is a showing (11,867,881.19) while the retained earning( account name Year’s P/L) at 31/12 account is showing a different number (11,612,600.68)
I’ve gone through the retained earning account it shows a Dr movement with the amount of 12,751,581.19 which should settle the balance to become equal to the year’s P/L balance
Adding screenshots from PL and Equity section Balance sheet
Please let me know if you need more details
I really appreciate your willingness to help

Thanks a lot

What could be the problem here, the trial balance is not balanced as a result of this

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2

It is impossible to answer your question without more information. Possible explanations include cash versus accrual accouting, starting balance errors, and much more. The first step is to understand the source of the debit you mentioned. It did not materialize from nowhere.

3

Was the retained earnings prior to 1/1/(22 I presume) distributed to capital accounts so that the RE balance at 1/1 was zero?

4

yes , the beg balance is zero

5

the Dr movement is made (presumably) to balance the loss/profit at the end of the period in this case 31/12/2022
the point I’m trying to raise here is that this assumed process did not go well
so as I understand it
11 Mil loss will mean -11 Mil in RE which is not the case

6

This is incorrect. The loss reflects Revenue - (Costs + Expenses).

7

I guess you misunderstood the (-) sign :slight_smile: by -11Mil in RE I meant that RE Balance should be (11) mill (Negative 11Mil)

8

If you want any meaningful help on this, you will need to post screen shots of the relevant screens - otherwise it is impossible to explain what you are asking about

9

Have you run a Balance Sheet Report as at 31/12/2021 and checked that the Retained Earnings balance on this report is zero?

10

I updated the post with screen shots , please look again and let me know if you need more info/screenshots

11

it’s a newly created company on manager I entered the balances myself

12

I updated the post with screenshots , please look again and let me know if you need more info/screenshots

13

Thank you, but you need to show full screen balances not the cut off bits you have shown

A screen shot of the opening balances would useful

You also have entries in the Suspense account. These should be corrected first of all

14

I asked you to run the balance sheet as at the 31/12/2021 to double check that the system has the retained earnings balance at zero as at 31/12/2021. This is your starting point for finding the discrepancy.

If you did run the balance sheet at 31/12/2021 and RE is zero all you needed to do is to confirm that you have done it.

We are trying to help you, if you don’t do what is asked of you then further help is going to dry up very quickly

1 Like
15

It is not clear if this is a new company or the transfer of an existing company into Manager

Mahmoud said

it’s a newly created company on manager I entered the balances myself

but that it ambiguous and could mean either a new business starting up or the transfer of an existing business accounts from another system

16

Yes, and entering balance sheet starting balances produces a retained earnings balance

17

You didn’t apparently track down the source of the debit. No one else can do this, because no one else has access to your records.

I did not need screenshots. You need to follow up on the advice you received.