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
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.
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
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