Turn on suggestions
Auto-suggest helps you quickly narrow down your search results by suggesting possible matches as you type.
Showing results for
Get 50% OFF QuickBooks for 3 months*
Buy now
Got it. The entry to clear this negative balance is a deposit to your Cash account. Assign Uncategorized Expense to the deposit because that account was overstated from the previous year too. Date the deposit in 2024 if you haven't closed the books yet or 2025 if you have.
The reason Uncategorized Expense was overstated is because you assigned that account to both the personal withdrawal and to the transaction when the bank pulled back the funds whereas you only assigned an income account to the original deposit. So, you recorded $1,650 in income and $3,300 in expenses (for a $1,650 loss) in the previous year for this $0 net transaction.