Hi
I'm having problems with the presentation of my accumulated reserves. I want to show on the balance sheet
Retained earnings b/f 100
Current earnings 10
Total accumulated fund 110
but if I do this in year 1, in year 2 I get the same retained earnings b/f figure, with the current earnings figure being changed to take account of the cumulative profit movement rather than just showing the profit of the year:
Retained earnings b/f 100
Current earnings 20
Total accumulated fund 120
In other words I'm treating the b/f figure as if it was fixed equity when I want to treat it as cumulative profit, and I'm treating current earnings as cumulative profit when I want it to be the profit for the year.
Help please!
Hi Louise,
Once you have entered all the transactions for the financial year, click menu Setup > Financial Year > Start a new financial year. This will create a new end-of-year transaction which transfers the profit from the Current Earnings account to Retained Earnings.
Regards,
