closing entry

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 January 2011 for transferring expense and income account balances to profit and loss we need to pass a closing entry.
Is that entry mandatory to be passed in the books?

can income and expense ledger show flowing transaction accross the years even if we are taking opening trial balance without p&L figures.

CA Jeen paul

CA Jeen paul (Expert)
Follow

22 January 2011 balance sheet is prepared after all the reveue accounts are summed up in a ledger account called P/L a/c. balance in the P&l a/c shows the accumulated opreating results of the company.
it is mandatory to pass closing entries in the books of account. in mannual accounting system you need to pass journal entries in the jurnal book and respective posting should be made in the ledger to close the books of accounts. only those heads appearing in the balace sheet will be carried forward to next year.
no the income and expenses ledger should not show the flowing transactions because every entity is mandatorily prepare the financial statements and submit to various athorities, hence book closing is must
in a comutarised accounting envioronment these book closing will be auotmatically done by the computer new genration accountants may not know about this closing entry

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Shameem ahmed

Frank

nitin

Devaraj B V

Arpita Gilhotra

Subscribe Now

closing entry

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA