Balance Sheet Won't Balance

Forum|Forum|3 years ago
March 6, 2023
1 reply
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I would greatly appreciate someone explaining why my balance sheet is out of balance. Here are the details:

Assets: Beginning of Tax Year End of Tax Year

Cash 20,789 6,907

Buildings 129,015 125,519

Less Accum Dep 4,496 4,691

Land 916,000 916,000

Total Assets 1,061,308 1,042,735

Liabilities: Beginning of Tax Year End of Tax Year

Mortgage 715,212 700,287

Partners’ Cap Accts 346,096 323,167

Total Liab & Cap 1,061,308 1,023,454

Out of balance by 19,281

Rental Income 80,182

Deductions:

Gen & Other Rental Exp 66,267

Assets Assoc w/Rental Prop 66,842 (incl accum dep & two remodels using special depreciation allowance)

Common Bus Exp 202

Total 129,311

Net Loss -49,129

Capital Contribution 26,200

Reduction to Partners Cap Accts -22,929

TurboTax Business Windows

Mike9241

because your numbers don't make sense. honestly, you should see a tax pro or use an accountant that knows bookkeeping.

1) why did buildings go down about $3500

2) accumulated depreciation went up by about $200 but you say "Assets Assoc w/Rental Prop 66,842 (incl accum dep & two remodels using special depreciation allowance)". assets and accumulated depreciation don't affect profit and loss but current-year depreciation does

3) cash beginning of year 20789

rental income 80182

cash contribution 26200

cash expenses - 66267 can't be sure if this includes depreciation or not but based on the accumulated depreciation amount depreciation would only be about 200

gen expense cash -202

mortgage paydown -14925

asset purchases plug to balance cash to 6907 = 38870

cost beg of year 4496

therefore eoy sb 42561 not 6907

profit and loss a guess 80182

less cash expenses -66267 guess that this doesn't include depreciation expense

less cash expenses -202

less depreciation guess = change in accumulated depreciation -195

results in profit of 13518

but you say loss is 49129

about a $63,000 difference. all I can conclude is that many of your numbers are unreliable