Carry Forward Net Profit in Balance Sheet

Accounting
1

Hi
I’m finalising my year end accounts with my accountant, but have also revisited my accounts / trial balance for 2015 as well as 2016 to check my postings were correct.

I’ve made some journal changes that were identified by my accountant, but he has identified that I have a net profit from 2015 which he’s carried forward in my 2016 TB as an opening balance.

	OPENING		TRANSACTION		CLOSING

CODE DESCRIPTION DR CR DR CR DR CR BALANCE
3200 Profit and Loss Account 70,517.83 70,517.83 -70,517.83

My question is, how do I get the posting of the carried forward net profit from the 2015 year into the starting balance in the 2016 figures?

If I do this as a journal, where do I transfer from / to - so that it shows in my 2016 TB nominal code 3200 P&L Account?

Any help appreciated! Apologies

Thanks

2

If you run year end routine for 2015 it will pick closing profit and put it under 3101 Retained Profit & Undistributed Reserves for 2016
Your 2016 P&L 3200 Profit and Loss Account should not have 2015 figures as op bal

3

Thank you - how do I process my year end for 2015?

4

Hi @StaceyC

The year end tool will help produce the journal that @FaradayKeynes mentions.

There’s more information on this here

Hope that helps!

5

Hi, yes it does, thank you :slight_smile:

I’ve just rerun the journals and now my TB, Balance sheet and P&L all balance back to the accountants reconciliations - phew!!

Thank you again

Kind Regards

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