Example of balancing by source of earnings
In this example, the following accounts are
balanced:
| Profit and Loss account | Debit/ Credit | Amount | Source of earnings account |
| Costs of
Goods Sold | Debit | 400 | Operating Results |
| Sales Revenue | Credit | 1000 | Operating Results |
| Restructuring Charges | Debit | 50 | Extraordinary
Results |
If you use the Source of Earnings balancing method, when you run the Automatic Balancing (tfgld6202m000) session LN creates the postings
described here.
To balance the Profit and Loss accounts:
| Ledger account | Debit/ Credit | Amount |
|---|
| Costs of Goods
Sold | Credit | 400 |
| Sales Revenue | Debit | 1000 |
| Operating Results | Credit | 600 |
| Restructuring
Charges | Credit | 50 |
| Extraordinary
Results | Debit | 50 |