Retained Profits

[NEC]

Continuing the discussion from Creditors Control balance that doesn’t correlate?:

@Glenn

45p is the net of all your sales and purchases for that accounting year, I.e. the bottom line of your P&L, when you run the year-end it creates a journal and moves the balance on the P&L over to the balance sheet 3101 as retained profits.

Many thanks for that Glenn. So it’s fine to have it there as it’s the profit that is carried over into the following year?.

It’s just weird where it comes from and frustrating when you don’t know.

[Glenn]

@NEC

So it’s fine to have it there as it’s the profit that is carried over into the following year?

Ordinarily yes it just gets brought forward as retained profits.