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Gerri A Harrison CFP EA
Gerri A Harrison CFP EA, Financial Advisor
Category: Finance
Satisfied Customers: 252
Experience:  Over 10 years working with clients in the areas of personal finances and financial education.
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YTD Income does not match between Balance Sheet and Profit

Customer Question

YTD Income does not match between Balance Sheet and Profit and Loss statement. Where do I look for the difference?
Submitted: 6 years ago.
Category: Finance
Expert:  ConceptsCoach replied 6 years ago.

Hi there,

 

Could you pls elaborate a bit more?

 

Thanks

Customer: replied 6 years ago.
The difference between the balance sheet year to date income and the year to date income on the Profit and loss statement are not the same. How did it get out of balance and where in the GL can I look for an error. I have reviewed the trail balance andall amounts are the same as on the Balance sheet and profit and loss. i don't know where else to look. I know the amount it is out of balance. Can I make an entry to correct? If so, what is the entry?
Expert:  Gerri A Harrison CFP EA replied 6 years ago.

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.

Customer: replied 6 years ago.

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.

Expert:  Gerri A Harrison CFP EA replied 6 years ago.
I will look for information tomorrow