I’ve now battled for 3 years with the ‘Retained Profit’ and can’t make head nor tail of how it works.
We had been trading for a couple of years before using Quickfile and I needed to enter some invoices/receipts in order to use VAT MTD, also we had some previous large purchases to account for so Quickfile and my own XL accounting have never agreed!
Am I correct in thinking that during year end process the closing balance will take off any payments made through 3102 and also add on this years profit? Is there a way to view this computation?
How do I correct the retained profit account - is there an easy way?
Any help would be gratefully received.
3102 Dividends Paid is taken into account after year end journals are run and saved, you can see details under 3101 Retained Profit & Undistributed Reserves click on magnifying glass icon and then see details under year end journals
Yes that’s great but how do I make the 3101 figure accurate? As at our new year 1/4/21 the figure showing is £18,631.61 more than we actually have in the ‘pot’.
NB - I have ‘closed off’ year ended 31/3/21 and any dividends due for previous year have already been paid through the bank account and tagged.
If your figures are off then you’ve likely forgotten to add correct opening balances all those years ago. Only way to make it accurate now would be with a journal adjustment. But first you need to work out where that extra amount should have gone. It must be something placed in the wrong nominals. It can’t just be a random figure that relates to nothing unless of course you’ve had duplicate bank entries by mistake, but if you’ve reconciled the transactions against the actual bank it may not be that.
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