Closing of books of accounts.....

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Querist : Anonymous

Querist : Anonymous (Querist)

19 September 2012 How to close books of accounts of a company? What are the entries to be passed.....

Amol S Joglekar

Amol S Joglekar (Expert)

19 September 2012 you mean finalisation entries? The same as that of proprietory or partnership. Balance the accounts... transfer the nominal accounts to P&L a/c, others to balance sheet. Make the adkustment entries for prepaid expenses, received in advance etc....

CA.Vinita Gupta

CA.Vinita Gupta (Expert)

19 September 2012 Adjustment Entries for
1. Prepaid Expenses
2. Outstanding Liabilities
3. Depreciation Entries as per Companies Act
4. Balances write off
5. Ledger Scrutinies
6. Adjustment of Vat A/c

Querist : Anonymous

Querist : Anonymous (Querist)

20 September 2012 thanks for the reply bt u r nt getting my point....i am aware about the adjustment entries to be made.....i am asking about the closing entry like in partnership firm we transfer the profit to capital a/c by passing a single entry i.e.
Profit & Loss A/c Dr.................xxx
To capital A/c.......................xxx
and close the accounts....In similar way how the accounts of corporates are closed?

Amol S Joglekar

Amol S Joglekar (Expert)

20 September 2012 Sorry, we could not understand you. Transfer the net profit to Profit and loss appropriation account.

Querist : Anonymous

Querist : Anonymous (Querist)

01 October 2012 Thanks Mr. Anmol i just wanted the same reply in closing only one entry should be passed to transfer the profit to appropriation or reserves account..in my opinion..and there is no need to transfer each and every account of income and exp. to profit and loss and thereafter to reserves..

Amol S Joglekar

Amol S Joglekar (Expert)

01 October 2012 from profit and loss appropriation account the transfer/ appropriations are made as per the board resolution / AGM resolution / EOGM resolutions.

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