retained earnings

gdmn6 · Post by **gdmn6** » Wed Jul 25, 2007 6:18 pm

I have an account that is not a budgeted item. An "in and out" account. It carries a balance from years previous. How do I enter that and then carry it over into the next year? PC 10 user

Matt · Post by **Matt** » Thu Jul 26, 2007 9:21 pm

To enter the beginning balance from years previous debit the appropriate asset account and credit a temporarily restricted equity account. To carry the balance forward to future years you will need to make sure that the close to accounts on the corresponding income and expense accounts are set to close into the temporarily restricted equity account you set up.