Review a retained earnings follow-up with Tally
Use Tally to investigate a prior-year profit balance before deciding whether a narrow retained earnings entry is appropriate.
Find The Follow-Up
When Tally sees a possible prior-year profit balance, Work Summary can show Last year's profit may need a Retained Earnings close. Choose Review with Tally to inspect the company-specific evidence.
This is a review prompt, not an instruction to post. Tally first checks the start-of-current-year balances, the prior-year P&L residue, equity accounts, distributions, and the available company history.
What Tally Reviews
Tally keeps the proposed work narrow:
- prior-year profit left in Current Earnings may be folded into Retained Earnings;
- prior-year distributions may be considered only when the company evidence supports that treatment; and
- capital, loans, reserves, unclear equity balances, current-year net income, and current-year distributions stay out of the proposed close.
If the destination account or the company's treatment is unclear, Tally asks a question or leaves the balance for a person. It does not choose a default equity account to make the balance disappear.
Review The Preview
Tally prepares a preview showing the date, accounts, lines, and amount before a journal entry can be posted. Read the evidence and the exact destination. Give an explicit confirmation only when the proposed entry reflects the firm's accounting decision.
Clicking the Work Summary item or asking for a review does not post the entry. The normal authority, period-lock, journal-balance, and audit rules still apply.
For the report result, review the Balance Sheet and the related equity register after any confirmed entry. A retained earnings follow-up does not replace the firm's broader period-review policy.