UK Double entry (P&L vs BS)


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I'm studying accounts for a while but just realised still can't link how the double entry works between P&L and BS.
I understand the general rules of double entry but I've realised can't understand how P&L entries link to BS to show that both sides at BS still equal.
The best example to illustrate it is e.g. entry of tax provision at month end where one side goes to P&L and the other to Provisions on BS, or any accrual hitting cost account on P&L but the other going to accrual account on BS.
It seems in each case BS is hit once - only the cr side, and not to square. How does the other entry (dr) work or where does it really go that BS still square, although is hit by one (cr) side of the journal only?

I understand Retained Earnings account is used only at year end to move the profit from P&L to BS.
Seems I miss something here. Will appreciate clear answer to it.
Thank you
 
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kirby

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Hi 22Carolyn

The double entries are made to the general ledger, which is the set of accounts in use. From that general ledger you can create a trial balance report which should show that debits equal credits in total for all the accounts. From the trial balance, you create a balance sheet (using the balance sheet accts : assets, liabilities and equity accts) and an income statement (using the revenue and expense and tax provision accts).

Given the above description, the balance sheet will likely not have ALL the general ledger accounts in it. Therefore it will not necessarily have both sides of any particular entry. The other side could be on the income statement.
 

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