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When you try to post any GL journal entries into the unappropriated profit & loss account (or retained earnings) , you will see this warning message below.
Answer : The unappropriated profit and loss account (found in the Balance Sheet) is a special account that is a calculated net amount in the final profit and loss for the year end.
A - B- C - D = E
You want to add another expense to reduce E because of audit adjustment.
So you want to appear A- B- C -D = E - B1 = E1
We are now saying you had to add B1 to B because you had somehow under provide (for example) and now you need to set B1 into the equation
We are suggesting that you do the followings
A - (B + B1) - C- D = E1
The above will give you a better comparison of your expenses that last year your B is actually B + B1 as compared to the auditor method that B is still B but all adjustment expenses add against the retained earnings that is not true for management understanding of your B group expenses.