Re: What is main cause of Unbalanced Sch L 1120S?

dbtaxsolutions · ‎02-29-2020

Can any one help me understand why my Sch L is not balanced on 1120S ? the prior year entries are correct? and everything is correct on current year as per books, but there is difference of 118 431? I mean all entries are correct, where would this unbalance source be coming from? I highly suspect it's changes to retained earnings, that's the only account that can be adjusted. Is it okay to make the line 25 adjustment to balance for the same amout? I don't know how else to fix this because all entries are correct. Thank you for any direction.

garman22 · ‎02-29-2020

Withdrawals?

dd4vols · ‎02-29-2020

Did you have PTI distributions to shareholders, that you haven't put on the appropriate part of the tax worksheet? Pages 3-5 Section Items Affecting Shareholder Basis>Shareholder Distributions and Dividends Smart Worksheet "A"

On the M-1 wkst...do you have line F checked yes?

If you have a year end trial balance...that is what s/b entered into the Schedule L.

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sjrcpa · ‎02-29-2020

Common causes:

Not having a trial balance and trying to wing it

Data entry error when there is a trial balance

The more I know the more I don’t know.

qbteachmt · ‎02-29-2020

Distributions posted as Expense is a common error.

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