Why can't I see Retained Earnings in in my trial balance?

The 3900 Retained Earnings account does not show up on the Trial Balance report in Core. This is by design because a trial balance shows only accounts that have actual transactions in the accounting tables. In Core, we don’t create any entries for this account as it is handled automatically upon closing of books. 

To show this account in your Trial Balance report, you need to post entries to that account. Here are the steps to close your net income in Retained Earnings for the previous year:

  1. Run the Profit and Loss report as of your closing date, say December 31 of the previous year.
  2. You can use the Profit and Loss report to make a journal entry for the new year, say January 1, to close your revenue, Cost of Goods Sold and expense accounts into Retained Earnings.

Note: Core does not support automatic closing of accounts; you have to manually close your income and expense accounts into the Retained Earnings account using the accounting rules.

Debit and Credit Rules

Account Type

Normal Balance

Increase to Account Balance

Decrease to Account Balance

Example

Property Accounts
Asset Debit Debit (left column of account) Credit (right column of account) Cash, Accounts Receivable
Property Rights Accounts
Liability Credit Credit (right column of account) Debit (left column of account) Accounts Payable
Owner's Equity Credit Credit (right column of account) Debit (left column of account) Owner's Capital
Revenue Credit Credit (right column of account) Debit (left column of account) Sales
Costs and Expenses Debit Debit (left column of account) Credit (right column of account) Rent, Utilities, Advertising
Owner Draws Debit Debit (left column of account) Credit (right column of account) Owner Draws

 

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