My Net Profit (Loss) is always not equal to my Retained Earnings, why please? What can I do. A screenshot is attached for easy understanding. Thank you.
It looks like your ‘Manager’ start date is 1/1/2024.
The starting balances that you entered on this date will have generated entries from these to the Retained Earnings account. Create a separate Capital account in the Balance Sheet under Equity and use a Journal Entry to transfer the balance in your Retained Earnings account at start date to this a separate Capital account.
1 Like
In addition to @AJD why did you rename and move Retained earnings from Equity to Liability? Note that Retained earnings are accumulated net profits not distributed as dividends and are part of Equity in the accounting equation.