Finance Questions? Ask a Financial Expert for Answers ASAP
Could you pls elaborate a bit more?
Are you using software of some type or doing hand ledgers?
With software, the income amount is generally automatically carried to the balance sheet in the equity section and is not entered by you. I cannot see where there would be a difference unless another account in the equity section is off - retained earnings, owner's capital or draw. If you can tell me what software you are using and if all the other equity accounts are correct we can look at a few other things.
If you are preparing books by hand then I would suggest you look at the trail balance entries. It sounds like one of your journal entries is out of balance. A quick check would be to add all the debits and add all the credits to make sure they are equal.
Please provide more information if possible to allow me to answer the question.
I use a computer software. It is Custom Home Builders Solutions. I did not check the
detail for the retained earnings. I will get that information tomorrow at work and see if that helps. I may need to contact you tomorrow.