Where to Enter the Balance Sheet in Drake Tax
Screen L is the balance sheet. Both the beginning and ending columns have to be entered. While autobalance is active, the lines it adjusts, retained earnings on an 1120-S and partners capital on a 1065, cannot be entered directly: turn autobalance off first.
- Open the return
- Data entry
- Screen L, Balance Sheet
| Trial balance account | Drake Tax screen and field | Lands on |
|---|---|---|
| Cash | Screen L, assets | Schedule L line 1 |
| Accounts receivable | Screen L, assets | Schedule L line 2a |
| Inventory | Screen A for the Schedule A detail, flowing to screen L | Form 1125-A and Schedule L line 3 |
| Accumulated depreciation | From screen 4562. Beginning figure must come from the prior year | Schedule L line 10b |
| Notes payable | Screen L, liabilities, split by term | Schedule L line 17 or 19 |
| Retained earnings | Screen L, but locked while autobalance is on | Schedule L line 24 (1120-S) |
| Partners capital | Section L of each K1 screen, flowing to Schedule L | Schedule L line 21 (1065) |
| Other asset and liability detail | Screen SCH2 | Schedule L other lines |
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| Acct # | Account | Debit | Credit |
|---|---|---|---|
| 1000 | Cash (the account this page is about) | 42,800.00 | |
| 1200 | Accounts receivable | 68,500.00 | |
| 1300 | Inventory | 55,000.00 | |
| 1500 | Equipment | 145,000.00 | |
| 1510 | Accumulated depreciation | 47,500.00 | |
| 2000 | Accounts payable | 28,400.00 | |
| 2100 | Accrued expenses | 9,200.00 | |
| 2400 | Notes payable | 92,000.00 | |
| 2450 | Due to shareholder | 15,000.00 | |
| 3000 | Common stock | 10,000.00 | |
| 3900 | Retained earnings | 86,300.00 | |
| 3950 | Shareholder distributions | 52,000.00 | |
| 4000 | Gross receipts | 612,000.00 | |
| 5000 | Cost of goods sold | 318,000.00 | |
| 6000 | Salaries and wages | 88,000.00 | |
| 6050 | Officer compensation | 72,000.00 | |
| 6300 | Depreciation expense | 21,500.00 | |
| 6900 | Other operating expenses | 37,600.00 | |
| Total | 900,400.00 | 900,400.00 |
Screen L, and the lines you cannot type in
Screen L holds the balance sheet. The part that surprises people is that some lines refuse input: while autobalance is active, the lines it adjusts cannot be overridden in data entry. On an 1120-S that is retained earnings, line 24. On a 1065 it is partners' capital, line 21.
If a field will not accept a figure, that is why. Turn autobalance off, on the PRNT screen for the return or globally in Setup, and the field becomes editable.
The beginning column is not on this year's trial balance
Schedule L reports both columns, and the beginning figures come from last year's return or the client's prior year books. Two are missed most:
Beginning accumulated depreciation. Nowhere on a current year trial balance. It comes from the depreciation schedule.
Beginning distributions or draws. The current year account starts at zero after closing, so the prior year activity is invisible.
A brand new client with no prior year return in Drake has neither, and that is the usual reason a first year engagement starts out of balance.
Where equity actually comes from
Not always screen L. On a 1065, partner capital account amounts are entered in section L, Analysis of Capital Account, of each partner's K1 screen, including beginning capital and contributions during the year, and those entries flow to Schedule M-2.
So an equity figure that looks wrong on Schedule L is often an entry problem on a K1 screen rather than on the balance sheet.
Inventory connects to Schedule A
The ending inventory in the Schedule A cost of goods sold detail and the inventory on Schedule L are the same asset at the same date. Drake's own list of imbalance causes includes inventory on Schedule A.
When those two disagree, nothing errors. Cost of goods sold is simply wrong by the difference.
Tax return treatment
| Form | Line |
|---|---|
| Form 1120S | Schedule L, with retained earnings on line 24 |
| Form 1065 | Schedule L, with partners capital on line 21 |
| Form 1120 | Schedule L, with retained earnings on line 25 |
Common questions
What screen is the balance sheet in Drake Tax?
Screen L. It holds both the beginning and ending columns of Schedule L. Some equity detail is entered elsewhere: partner capital goes in section L of each K1 screen, and other asset and liability detail goes on screen SCH2.
Why can I not enter retained earnings on screen L?
Because autobalance is active. While it is on, the lines it adjusts cannot be overridden in data entry: retained earnings on an 1120-S and partners capital on a 1065. Turn autobalance off and the field accepts input.
Where do I get beginning accumulated depreciation?
From the depreciation schedule or the prior year return. It does not appear on the current year trial balance, which is why it is the most commonly omitted balance sheet figure and a frequent cause of an out of balance Schedule L.
Does inventory on Schedule L have to match Schedule A?
Yes. Ending inventory in the cost of goods sold detail and inventory on the balance sheet are the same figure. Drake lists inventory on Schedule A among the common causes of an imbalance, and a mismatch makes cost of goods sold wrong without producing an error.
Related answers
Go deeper
This page is the short answer. These articles work through the same ground in detail.
Last reviewed October 17, 2026.