Schedule L from 1120S is out of Balance.

[Jason999]

My Schedule L is out of balance.

Schedule L. Balance Sheets per Books.

Assets:
Line1: Cash: 16000

Liabilities:

Line 24: Retained earnings: 13000

Out of balance by: 3000

Where do I allocate the $3000 to balance the Schedule L? Some people add it to Line 23: "Additional paid-in capital", some add to "Capital stock" none of the choices seem right.. not sure.

If I added it to "Additional paid-in capital", will the amount become taxable later as some capital gain etc??

There must be some common practice that accountants use when the Schedule L does not balance with the problem as mine. I am not sure where the problem is or maybe it is not a problem.

The M-2 Worksheet from TurboTax Business calculated the $13000 value given distribution and non-deductible expenses.

Thank you in advance.

[Anonymous_]

You should probably post the other figures in your balance sheet but it appears as if the $3,000 in non-deductible expenses, possibly, may not have been deducted from your cash account.