1. Add an accounting group called ‘Reserves & Surplus’ under Liabilities accounting class. To do this, please go to Accounting->Chart of Accounts and click on Add Accounting Groups button and follow the steps on the screen.
2. Then, please add a new account ‘Excess Income over Expenditure’ (or any similar name) under the newly created ‘Reserves & Surplus’ accounting group and update the opening balance (with last year’s surplus’s closing balance). To do this, please go to Accounting->Chart of Accounts and click on Add Account and follow the steps on the screen.