Skip to main content
A
Anne0322
June 10, 2020
Question

Issued Capital / Retained Earnings

  • June 10, 2020
  • 1 reply
  • 0 views

Hi.

I am located in the US and have been using both Quickbooks desktop and online vesions for over 10 years.  I was asked to set up QuickBooks Pro UK 2020 for the European office.  It's gong well so far and I have been adding a few years of historical data.  There is an issue regarding Issued Capital.

In the US, net income for each year is posted in Retained Earnings (default equity account).  This has been happening with the UK version in the Issued Capital account.  It bothers my CFO because he wants everything to be uniform and consistent with all our offices around the world.  (We created a standard COA for all business entities last year).

How can I change this so net income is booked to Retained Earnings?  There is nothing in preferences about this.

Many thanks for any ideas and suggestions. 

1 reply

MariaSoledadG
MariaSoledadG
June 10, 2020

Welcome to QuickBooks, Anne0322.

 

QuickBooks Desktop US and UK version work the same when closing entries at the end of the year. Let me provide you information about this.

 

The balance from your Income and Expense account is transferred to Retained Earnings at the end of the financial year. This is to zero out your Income and Expense accounts, then add your financial year's net income to Retained Earning.

 

You can check if Issued Capital's original name is Retained Earnings. Since the only way to change is if someone renamed the account. You can follow these steps to verify if there are changes to the account.

 

Here's how:

  1. Click Reports on the upper menu.
  2. Select the Accountant and Taxes option.
  3. Choose Audit Trail.

For future reference, you can run and customize reports in QuickBooks Desktop:

Fill me in if you need anything else. I'd be glad to help.

Terms & ConditionsAccessibility statement