Reports
Trial Balance Report
You can find the Trial Balance report by going to Reports and under For Accountants> Trial Balance.
How Retained Earnings are calculated in the Trial Balance report
Suppose you generate a trial balance report from 2025-01-01 to 2025-12-31. Wafeq will calculate the Retained Earnings beginning balance as follows:
- Sum All Revenue: Add the total from all journal entries under revenue accounts until December 31, 2024.
- Sum All Expenses: Add the total from all journal entries under expense accounts until December 31, 2024.
- Adjust for Retained Earnings Entries: Add any adjustments from journal entries specifically made against the Retained Earnings account, such as manual journals.
The beginning balance of Retained Earnings is then calculated by taking the sum of all revenues, subtracting the sum of all expenses, and adding any adjustments recorded directly to the Retained Earnings account.
Difference with Balance Sheet report
Difference with Balance Sheet report
The Retained Earnings on the Balance Sheet report is calculated as follows:
Retained Earnings = Sum of all revenue journal lines until report date minus sum of all expense journal lines until report date plus sum of all journal lines entered against the Retained Earnings account (for example, manual journals you might have created).
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