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Hi. Balance sheet does not balance

LasmanisLasmanis Member Posts: 5

Hi

There is a mismatch on my balance sheet, what can be the reason for it?
Total assets = 354,315.39 and Equity + Liabillity is 414,689.12 - 60,491.03 = 354,198.09

So it is showing 117.30 difference

Is there a way to check why is that?

edited June 28, 2021 in Accounting Feature Ideas

Comments

  • Sydneyrain_financialSydneyrain_financial Member Posts: 2

    It might be a typo in the numbers. I suggest checking the debits to the credits to make sure they match.

    If that doesn't work, check all your totals on the Balance Sheet to make sure no lines are being omitted.

    Go down the Cash Flow Statement line by line and ensure that the Balance Sheet is picking that item up in an account other than cash (assets, liabilities, or equity), in the right amount and the right direction.
    Net Income would increase Retained Earnings (or decrease it if Net Income is negative)
    Depreciation would decrease Property, Plant & Equipment
    A Deferred Tax Expense add-back would either increase Deferred Tax Liabilities or decrease Deferred Tax Assets
    Working capital changes would affect the various accounts (make sure the signs/direction of cash flow is correct)
    And so on and so forth, keep going through every line of the Cash Flow Statement until you’re done

    If the Balance Sheet still doesn’t balance after step 2, it can only mean one thing. It must mean there is at least one line on the Balance Sheet that is moving period to period without a corresponding Cash Flow Statement change or an offsetting Balance Sheet change. For example, maybe you’ve assumed that Other Long-Term Assets grow as a percentage of sales. That might be fine, but you’ll need to offset the increase in assets

    If you still need help, I would be happy to check and see what is going on for you

  • LasmanisLasmanis Member Posts: 5

    Hi @Sydneyrain_financial

    Sorry, somehow missed your very detailed message.

    So the issue is that I am seeing Uncategorised income on my P&L. WHen I open the account, it is empty, so that is where I am confused. I even know that this 117.30 difference is happening on 07/11/2020. So yes, it seems like a glitch

    Would you be able to check it for me?

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