In my accounting books I have purchased various material to different places. where I have added a field “Cartage” which is the transportation cost incurred while purchasing goods. in manager summary this amount cartage comes under Equity as Retained Earning and on the other side it shows as loss. in actual this expenses are never retained in the company. please advice me where I am going wrong.
Based on what you have entered, everything is correct. But you have not entered things correctly. Manager is a double-entry accounting system, so in every transaction, debits must equal credits. You should have nothing in your Suspense account. That fact that you do means you have made unbalanced entries.
Retained earnings is the net of all capital contributions, capital outflows, income and expenses since inception of the company. It is an equity account, so the fact that is shows as a negative number is because you have spent 7000 with no recorded income.
A bigger question is how you got 93314 into the bank with no capital account balance. If this was your initial investment in the company, then when you entered that transaction, you should have allocated the transaction to a capital account and subaccount. Instead, it looks like you allocated to Customer credits, but why? Did you start the company with no investment (which is possible)? And did a customer pay you without receiving anything in return?
Another big question is how you accumulated 219520 in accounts payable with no expenses? Apparently, you entered purchase invoices from suppliers without allocating the transactions to any account. So they went to Suspense, where they await correction.
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Possibly by taking up the unpaid accounts payable balances at start date
If they aren’t retained in the company where show they be?
In your first year the Equity Retained Earnings account would equal your P&L total.
The suspense account under Equity shouldn’t be showing.
Are you taking up Starting Balances from another accounting system?
If yes, go to the Reports tab and select Starting Balances. Now compare your previous system Trial Balance with the displayed report. Correct any accounts in Manager that don’t match
If you didn’t set up opening balances, then you need to trace the entries that are creating the suspense account balance and correct them
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Tut:
Another big question is how you accumulated 219520 in accounts payable with no expenses
Brucanna:
Possibly by taking up the unpaid accounts payable balances at start date.
This is material purchase from my supplier for 1 month credit, for which I raised purchase order.
and the material is an inventory to me prior to supply to my client which I recorded in inventory.
material cost : 212520+ transportation : 6500+ Loading:500 = 219520.00
Tut:
A bigger question is how you got 93314 into the bank with no capital account balance
This is advance payment made by my client for the material. which I recorded in my bank account.
You did not. Your Inventory on hand account is empty. That accounts for most of what is in Suspense. You need to fix that. I suspect your cartage and unloading expenses should also have been allocated to inventory, as they are part of your cost of goods. Read all the Guides having to do with inventory. If necessary, an online search will turn up lots of information about inventory accounting.