diff --git a/src/pages/accounting/AccountingReportsPage.tsx b/src/pages/accounting/AccountingReportsPage.tsx
index 37d86d6..abc8635 100644
--- a/src/pages/accounting/AccountingReportsPage.tsx
+++ b/src/pages/accounting/AccountingReportsPage.tsx
@@ -1171,8 +1171,16 @@ function buildBalanceSheet(d: any, p?: any, useCompare?: boolean): StructuredRep
   // Equity — equity accounts + calculated RE / current-year earnings
   rows.push({ kind: "section", label: "Equity" });
   const equityAccs = byType("equity");
-  for (const a of equityAccs) rows.push({ kind: "sub", label: a.name, code: a.code ?? undefined, amount: balOf(a), compare: cmp(balOfP(a)), accountId: a.id });
-  rows.push({ kind: "sub", label: "Retained Earnings (prior years)", amount: cur.rePrior, compare: cmp(prev?.rePrior) });
+  // A real "Retained Earnings" equity account is postable via journal entries.
+  // Fold its posted balance into the calculated "Retained Earnings (prior years)"
+  // line so manual JE adjustments show there instead of as a separate line.
+  const reAccts = equityAccs.filter((a) => /retained\s+earnings/i.test(String(a.name || "")));
+  const reIds = new Set(reAccts.map((a) => a.id));
+  const otherEquity = equityAccs.filter((a) => !reIds.has(a.id));
+  for (const a of otherEquity) rows.push({ kind: "sub", label: a.name, code: a.code ?? undefined, amount: balOf(a), compare: cmp(balOfP(a)), accountId: a.id });
+  const rePosted = reAccts.reduce((s, a) => s + balOf(a), 0);
+  const rePostedP = prev ? reAccts.reduce((s, a) => s + (prev.glByAcct.get(a.id) ?? 0), 0) : undefined;
+  rows.push({ kind: "sub", label: "Retained Earnings (prior years)", amount: cur.rePrior + rePosted, compare: cmp(prev ? prev.rePrior + (rePostedP ?? 0) : undefined) });
   rows.push({ kind: "sub", label: "Net Income", amount: cur.cye, compare: cmp(prev?.cye) });
   const totalE = sumBal(equityAccs) + cur.rePrior + cur.cye;
   const totalEP = prev ? (sumBalP(equityAccs)! + prev.rePrior + prev.cye) : undefined;