Should Net Income on a Balance Sheet = Net income on an Income Statement?
Country/State/Province of question: CA
Dear Friend,Certainly YES. In fact, the Net Income figure in the Balance Sheet is derived from Income Statement and so, it has to be same.You may "Accept" this if it helps as this is the only way we get credit for the work. Alternatively, please feel free to revert with additional queries.Warm Regards,
I know it is difficult to tell, but what might be the causes of a difference between my balance sheet stating a different amount of net income than my income statement?
Dear Friend,Yes, that too is right. I would be difficult to pinpoint from here as to what caused the difference. However, I would request you to kindly try:Go back to trial balance levels and see if all ending balances are correct.See if these ending ledger balances are properly posted to Profit and Loss Accounts.I would be also required to see if any of the entries is omitted, but that is less likely.Unless we do this reconciliation exercise, it would be difficult to find the reason, but the reasons cannot be more than these. If you find it difficult, you can always get help from a local accountant to help you reconcile the accounts. THE KEY likes is proper reconciliation and this will lead you to solution.You may "Accept" this if it helps as this is the only way we get credit for the work. Alternatively, please feel free to revert with additional queries.Warm Regards,
Graduated in law with Emphasis on Finance and have have been working in financial sector for over 8