I have started a new quickbooks and done entries like normal. However there is a negative balance in the retained earnings. I have no idea where this has come from, the profit and loss figure is showing seperately in the balance sheet and is correct. I have also gone into chart of accounts and the balance and report show nothing. No data has ben entered prior to incorporation
Really confused!
Hi there, @Nafees Mohammed.
I'm here to help share insights about your account in QuickBooks Online.
Retained Earnings is an equity account and an account created by default in accounting books after a fiscal or calendar year assessment. It is an account that contains the company's profit to be used and reinvested.
Use this article to read and learn more about the account in question:
I've included this reference that'll help you understand your account and its transaction history which breaks down how much money you have or owe: The Chart of Accounts in QuickBooks.
Let me know in the comments below using the Reply button if you've got questions other than working with your accounts. I'll be here ready to lend a helping hand. Take care always!
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