Problem with balance

[maltesedog]

I have an income account in the nominal ledger whose balance is $90 at 31 dec. The account in the trial balance also has a balance of $90.

When I run the Profit & Loss -- opening balance to 31 dec --- the balance is showing a different amount.

What is the problem? How can i resolve.

[brucedenney]

The the profit and loss is a consolidation of the trial balance.

If the opening trial balance shows the balance then so must the P&L

Please check this is showing on the opening trial balance.

You would not expect to see any opening balances on the P&L account unless you have backdated a transaction in this year into the previous year.

[maltesedog]

I understand that there should be no balances in P/L items.

This particular account for a number of years was a Balance Sheet item.

This year the auditors decide to write off the account in the P/L and for this reason there is an opening balance.

I am presuming the only solution would be to open a new account and transfer the balance of this account into it.

[brucedenney]

In that case there should be no opening balance on the P&L, as the transaction would have happened in this year.