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What is main cause of Unbalanced Sch L 1120S?

dbtaxsolutions
Level 4

 

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.

 

unbalanced L.PNG

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4 Comments 4
garman22
Level 13
Level 13

Withdrawals?

dd4vols
Level 10
Level 10

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
Level 15

Common causes:

Not having a trial balance and trying to wing it

Data entry error when there is a trial balance


Ex-AllStar
qbteachmt
Level 15

Distributions posted as Expense is a common error.

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