the trial balance in my accounts has retained earnings when it shouldn’t have at all because its been a year only since the business has started and there is no profit incurred before the year… What should i do?
Retained earnings is the net of all inflows and outflows to the business since inception. If you have received or paid any money, issued any invoices, etc., it will have a balance. It does not matter whether you are profitable. Almost every transaction you enter will affect Retained earnings.
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Profits or losses incurres every day from day one…