Question regarding the retained earnings. After we book all the previous years' AJEs, in order to tie the R/E to prior year return, we still have a difference of 56,012.77. We need to credit R/E by 56,012. Can you please let us know why retained earnings does not tie out?

Or where I can look inorder to try and find the answer. By bookkeeper is out sick and need to get this done.

Thanks in advance.
Anelnn

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Originally Posted by anelnn

After we book all the previous years' AJEs, in order to tie the R/E to prior year return, we still have a difference of 56,012.77.

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What do you mean by previous years', 2008? What do you mean by prior year return, tax return and if so do you mean 2007?

What kind of accounting software are you using? Have you already gone through the year end closing process and debited net income to retained earnings?

I need you to elaborate here quite a bit to give you the right answer. Please give all the details you can and I will be glad to help you.