16 Nov Retained Earnings
This is a special QuickBooks created account. Although it is possible to make entries to this account, it is not possible to view a register of the activity. It is a calculated balance when a Balance Sheet report is created. The software adds or subtracts all of the profit and loss account activity through the end of the previous year, as well as any transactions that have been coded to the account directly to determine the amount that appears on the Balance Sheet. If the amount is incorrect, most often it is the result of a change to a profit and loss transaction from previous year. Although it is not possible to eliminate this account (i.e. even if it is deleted, QuickBooks will create it again as needed) the name of the account can be changed if the legal form of the business dictates that another name, such as Owner’s Equity, should be used.