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Accounts

vidhya (Student CA IPC / IPCC) (30 Points)

19 January 2014

balance sheet for fy 2012-13 contains prior period adjustments, what is the treatment for the above prior period adjustment while preparing balance sheet for fy 2013-14.

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CA Raj Doshi (Practising CA) (8723 Points)
Replied 19 January 2014

Do the requisite adjustments by making a temporary ledger account say Prior period adjustment a/c. For expenses or losses, Dr PPA a/c Cr particular a/c For income it gains, Dr particular a/c Cr PPA a/c Balance in PPA a/c - transfer to Profit and loss statement for f.y. 2013-14 . Regards Raj C Doshi