Retained Earnings

Q. I am just completing my setups and I ran a Balance Sheet and it shows Retained Earnings account going back to 1991. Why?

Answer:

This occurs anytime there is a entry made with a date for 1991 (or any year.) The system assumes that since this entry exists then you must have retained earnings. Go to reports, transaction report and run the report for a date range which includes 1991, this will show you the entry(s) that have caused this. Change the date on this transaction to the correct date (current year or prior year) and these retained earnings accounts will disappear.