Welcome to QuickBooks, Anne0322.
QuickBooks Desktop US and UK version work the same when closing entries at the end of the year. Let me provide you information about this.
The balance from your Income and Expense account is transferred to Retained Earnings at the end of the financial year. This is to zero out your Income and Expense accounts, then add your financial year's net income to Retained Earning.
You can check if Issued Capital's original name is Retained Earnings. Since the only way to change is if someone renamed the account. You can follow these steps to verify if there are changes to the account.
Here's how:
- Click Reports on the upper menu.
- Select the Accountant and Taxes option.
- Choose Audit Trail.
For future reference, you can run and customize reports in QuickBooks Desktop:
Fill me in if you need anything else. I'd be glad to help.
