Hello, need a hand with an opening balance adjustment.
My accoting software has certain balances which are different from my final account balances.
I'm wondering about the different variables I have to consider when attempting to balance my accounting system through a journal to bring them back into line.
The differences are in a slight VAT over-credit, an over credit in payables, and it appears an understatement in Accrual's in the accounting software.
I've attempted to simply balance out these differences using a journal as discussed however it doesn't seem to be that all the variables in the balance sheet can make the journal balance.
I'm not familar with the retained earnings in this fashion; I'm wondering how should I treat this in a journal to see if it is what is bringing me out.
I'm wondering is it a case of simply adding up the profit minus the expenses, and if so, do I add this to the prior year retained earnings in an attempt to make the accounting software retained earnings match this new conjoined figure. Additionally, when taking into account expenses, should I take into consideration tax paid post accounting profit?
A further question: Is the difference in provision for corporate tax something to consider here, and there is a dividend sitting in both tbs; should I have to take this into consideration when considering the retained earnings?
Thanks for any help as offered in advance.