Balance Sheet

[DTS]

I am having trouble with Sch L. The L&E are higher by $38. I have been over this fifty times, if once!

Any clue what I am doing wrong or what to do? Seems like it should just flow in properly.

Grrrrrrr!
Dennis

[Snaggletooth]

Which Form, Lines

Dennis, Give us a little more help. Are you doing a corporate return? Which line items are out-of-balance, Accumulated Earnings, Total Assets, Reconciliation to Current Year Profits?

[BOB W]

Dennis.......

....Check your email..............

[DTS]

Snags

It's a partnership. I have had to reconstruct a balance sheet and input that into my program. I really don't know where I'm off. Sorry.

What I have done is subtracted the expenses from the gross income then added the net income to the other assets. Liabilities are a very small loan and accumulated depreciation.

I know this almost impossible for anyone to guess at without seeing in person, but I'm almost ready to override the program and make this balance! Unfortunately, my personality won't let me do this.

Anyway, sorry for the long-winded post. Any help you can lend me will be appreciated.

Dennis

[Lion]

Balance

Forgot which way you said you're off. But, with the fragments of info you were given to create a balance sheet, you're talented to be within $38. Did they use any partnership money to pay personal expenses? Or, pay a partnership expense out of one of their pockets? How accurate is their bank balance? What did I read yesterday about some items being "residually determined"?! There's less than a month left; make it fit! Good luck.

[Snaggletooth]

Dennis - try this

This error could be anywhere, so we could spend a lot of writing and never find it. We might try a couple of things. Firstly, accumulated depreciation is an asset even though it has a credit balance. It is misclassified if you have it listed as a liability, but this would not knock the books out-of-balance.

Do you have the balance sheet from last year? If so, try this: (1)note the beginning balance in retained earnings, even if zero (2)add the earnings for this year, enter a negative if there was a loss, and (3)this should be the ending balance in retained earnings. This becomes multi-dimensional if the partnership has only capital balances, or does not otherwise isolate retained earnings. If this is the case, you must (1)start with beginning capital balances, (2)add the earnings for this year, enter a negative if there was a loss, (3)add partner's contributions during the year and then (4)deduct distributions to partners. The result (5)should be the ending capital balances.

If this doesn't work, isolate step(2) above to determine earnings or (loss) for the year. Then add ALL revenue categories and subtract ALL expense categories. If this doesn't equal the number you used in (2), you may have found your error.

[DTS]

Thanks

I will go through the steps you suggest and see what I can come up with. I do have to fine-tune this return tomorrow, so I'll let you know how I come out.

Dennis

[S T]

More Thoughts

Dennis, was there deductions for meal/entertainment expense. Limited to 50% entry.

Remember, that your software will do part of it, don't override some of the figures on the Balance Sheet in the computer input. So if you have inputted figures on the Balance sheet including M-1 and M-2 take out your input entries, see what the computer calculation is. Then start to re-enter You probably only have to enter beginning cash/bank balances, liabilities, some receivables, some payables. Software should complete most of the rest.

You can fax me.

Sandy

[DTS]

Hey there!

Sandy,

Promise, I am not going to override anything. I kind of said this in jest, as a last resort type of statement. The program has carried everything over nicely. I'm so sure I have put something down incorrectly, but I can't find it, yet. I will!!!

I did have M&E and it shows up.

I received more info tonight from one of the partners that may help. I will try to finish this and see how it looks. If I can get to a zero diagnostic, I'll be a very happy man!

Thank you for your offer. I may take you up on it. Let's see how I do. I'll know soon enough.

How are your days going? Making a little headway on those stacks?

Talk to you later.

Dennis

[S T]

Your continuing Partnership

You haven't emailed or called, so now I have to resort to the message board!!!

My stacks are growing instead of diminishing, but the good item of the day, is that Tuesday 3/28/06 is the very last day out for appts! That is it, no waivering. So all clients now have to come to me, and the phone was ringing today! UGH!

Anyway go through the Balance sheets one more time, as I know you have done over and over, then call, emai or fax. $38 isn't so much, so a few dollars are rounding! Could be in some totaling since you are not working with a computer balance sheet and trying to recreate.

Recheck your liability on the loan outstanding, you could be off there!

Sandy