I’m seeking an answer to set my mind at ease that all is well and as it should be
I’ve just finished my first financial year and run my year end.
If I look at my Trial Balance report for the new financial year I’m happy that all opening balances are correct and the various nominals have zero’d out as they should. All of the opening balances make sense. However, the report has figures present for both 3100 and 3101 Should these carry forward and become cumulative year on year or should they have zero’d out also?
Essentially I have an opening balance of all of my drawings from last year and an opening balance of all of my retained profit from last year that don’t seem correct to me.
Should they have zero’d out at year end too?