Question
Balance sheet
I have a problem setting up my accounts for the first time in quickbooks. I know I have chosen the wrong account to balance the balance sheet (retained earnings) and need help to fix the 6 transactions that are causing me the problem. The amounts in the table below are correct however I know that I should not be using retained earnings to balance the sheet - what should I be using to set up journal entries for tax provision, year end debtors and accountants fees? My retained earnings account is out by £1,703.86 due to these transactions.
April, 2024-March, 2025
Transaction date
Transaction type
No.
Name
Line description
Full name
Item split account
Amount
Balance
Retained profit balance forward account (6) | ||||||||
Beginning Balance | – | – | – | – | – | – | 95,569.48 | |
08/04/2024 | Journal Entry | 5 | – | – | Retained profit balance forward account | – | -2,799.00 | 92,770.48 |
09/09/2024 | Journal Entry | 6 | – | Removing accountancy provision | Retained profit balance forward account | – | 810.00 | 93,580.48 |
26/09/2024 | Expense | – | HMRC | Corporation Tax | Retained profit balance forward account | Cash at bank | -81.44 | 93,499.04 |
31/03/2025 | Journal Entry | 8 | – | 2024 2025 Corporation Tax provision for year | Retained profit balance forward account | – | -998.42 | 92,500.62 |
31/03/2025 | Journal Entry | 9 | – | Year end debtors | Retained profit balance forward account | – | 1,365.00 | 93,865.62 |
Total for Retained profit balance forward account | -£1,703.86 |
TOTAL | -£1,703.86 |
Accrual basis|