[GNC] retained earnings in balance sheet: where does it come from?

[Andrea Borgia]

Il 10/03/19 01:19, Adrien Monteleone ha scritto:

> Retained Earnings is posted when you perform a close book operation.
> (or manually zero your income/expense accounts to Equity)
> 
> If you didn’t do this for 2015, there would be no entry.
> 
> If you performed the 2016 close book operation in Jan 2017, you’ll
> have a retained earnings entry in that month for the net
> income-expenses for 2016. If you were a non-individual entity, that
> amount would be the entity’s taxable income for the year, hence the
> tax flag. You probably want to fix that date to 12/31/16.

Hi, Adrien.

Thanks for the answer, however I think you got it backwards because I 
didn't explain it properly: what I find interesting is that the report 
shows a retained earnings value in the first place, whereas the entry 
itself was made by me and it's a tax(*) recorded on the same day as the 
bank statement (hence, correctly, in 2017).

So, I have the following entries:
14/01/2015: 53.80
20/01/2016: 53.80
13/01/2017: 54.10
18/01/2018: 54.00

54.10 showed up in the balance sheet for 2016, 53.80 did not show up for 
2015.

Does this additional information still fit your explanation?


Thanks again,
Andrea.

(*) yeah, in Italy you pay a small percentage of your bank account
balance for the privilege of having a bank account. Funny place, I know.