Public accountant question: prior year adjustments to retained earnings?

[John Ralls]

> On Mar 31, 2017, at 1:34 PM, Richard Games <richard at mycpas.ca> wrote:
> 
> Thank you very much John. I found how to make an account. But when I set the parent account to equity, gnucash does not seem to recognize the new retained earnings account and allow me to  " run Actions>Close Book". I've searched for that option (when in the "accounts" screen, but I cannot locate that function.
> 
> If you have a moment I would appreciate if you could direct me further.
> Thank you for your time,
> Richard

Please remember to copy the list on all replies.

Sorry, I replied earlier without confirming the menus. It's actually Tools>Close Book, which will open a dialog where you can set an account for balancing the closing splits, one each for income and expense; normal practice is to set both to the same account. The dialog also allows you to set the date for the close, so if the client's file is over several years you may want to run close book more than once. Finally, there's a Description field; it will be used to fill the descriptions of the two closing transactions.

Regards,
John Ralls