21st Century Accounting Help - General Ledger

Special Account Balances

To produce a correct Trial Balance and Balance Sheet, the balance for the Owner's Equity retained earnings account should include the net income or loss for the current period.

As you enter the other historical balances, the system calculates the net income or loss (that is, the difference between period balances for income and expense accounts) and displays the result. This helps assure the production of correct Trial Balance and Balance Sheet totals.