The **Status** Sheet is included in the **Content** of the Annual Financial Statements and is not printed, it serves as guidance for the Compiler. It proves valuable for Identifying Imbalances throughout the Annual Financial Statements.

If the **Retained Income** is out of Balance, it will affect the **Statement of Financial Position** **(SoFP)** and **Statement of** **Cash Flows**

A **Retained Income** Imbalance on the **Status** sheet will appear if the **Opening Retained Income** in the Current Tax Year's **Working Trial Balance** differs from the Prior Tax Year's closing balance.

The Imbalance must be Corrected at Trial Balance level on **Draftworx**.

On the Statement of Changes in Equity (SoCE), the Closing balance for **Retained Income** in the Prior Tax Year is 112,320

On the Current Tax Year's **Working Trial Balance**, the Opening **Retained Income** is 105,000

The Closing Balance of the Prior Tax Year (112,320) and the Opening Balance of the Current Tax year (105,000) differs with 7,320 as Reflected on the **Status**

The Imbalance could be caused by Journals created on Draftworx in the Prior Tax Year that were not Posted to the Accounting Package or Journals incorrectly posted to **Retained Income.**

The Prior Tax Year's Trial Balance in the Accounting Package must be compared to the **Working Trial Balance** on Draftworx for the Prior Tax Year to determine the origin of the Imbalance.

After the Opening Balance Test has been performed, the Correction must be made on Draftworx with a Journal Entry.

A Journal to correct the **Opening Retained Earnings** in the Current Tax Year

After the Correcting Journal, the Opening Balance of the **Retained Income** in the Current Tax year is Correct

The Imbalances Relating to **Retained Income** is Cleared on the **Status**

This guide provides a step-by-step process for effectively using the status sheet, specifically managing retained earnings imbalances within Draftworx Desktop, ensuring accuracy in financial reporting. By following the outlined steps, users can streamline their workflow and enhance their understanding of the status sheet, ultimately leading to better financial management.

Draftworx Desktop: Status Sheet- Retained Earnings - DX075