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How to Balance a deficit on a balance sheet?


I have a prebalanced balance sheet already. But now i have a loss in the business. If under Net assets that I put "deficit" and the negative amount, how would i go about balancing the assets = liabilities + net assets?

In another word, do i need to incease account payable or something of that sort?

thanks

538 day(s) ago

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Answers (1)

MelonsO 		You state that you have a "pre balanced" balance sheet. Are you sure that it is not a Trial Balance. You can not make a one sided entry to Retained Earnings to record the loss.

I believe the formula you are looking for is Assets - Liabilities + Owners Equity (Capital)

Posted 538 days ago

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