Trial Balance and other reports - wrong?

1

Hi I am doing a trial balance (accrual) and general ledger ( I am not an accountant - far from it), I have added in the invoices but not received money yet as I going to a bank reconciliation, a way of double checking. (I am re-entering all invoices from 2016 so I can use the system for this tax year)

In the trial balance the bottom line looks like double (very close) - ie it is adding invoices and retained earnings together but essentially the same thing, is that just accounts or wrong. The profit and loss looks ok…

Before I receive the money I want to make sure is correct before I do each invoice. (receiving money)

I guess it is correct, it has Nett loss for unpaid invoices… and the trial balance figures at the bottom are exactly the same, so I assume the figures accounts are correct, just double everything… but I am an accountant.

Thanks

2

Yes - the Trial Balance is just a listing, in Manager’s case, it lists the P&L accounts separately and provides a balancing sub-total and then lists the BS accounts and adds them to the P&L sub-total so this gives an appearance of a double value on the bottom line. In the below example the P&L subtotal of 100 is cancelled out by the Retained Earnings value.

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3

Thanks - makes it look like you earned a lot more…damn :slight_smile: thanks for the help,
I am assuming trial balance is when you are trying to work off a bank statement (balancing the books to a bank account) and if the 2 figures were not the same you knew there was a mistake… cheers

4

Actually, the trial balance is to check if the P&L/BS accounts are in balance.
For the bank account/statement, use Bank Reconciliation under Reports - Cash Accounts