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Entry for opening balance of bank account

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Querist : Anonymous

Querist : Anonymous (Querist)

24 December 2011 Hi, I am working in propritor firm, My query is we closed our last yr.books.Propritor open current a/c in last year but not shown in balance sheet. Now in this year we have to show it in books. So,in that account last year closing balance was Rs. 10000.
What entry should I do?

CA Ashwani Agarwal

CA Ashwani Agarwal (Expert)
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24 December 2011 Well, as you cannot rectify the accounts of previous year, just dr. the bank a/c and credit the proprietor on the first day of the current year.

Querist : Anonymous

Querist : Anonymous (Querist)

24 December 2011 as per accounting principal Which entry is correct?
Bank a/c dr to Prop. Capital a/c or
bank a/c dr to Cash A/c

CA Ashwani Agarwal

CA Ashwani Agarwal (Expert)
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25 December 2011 The first one is correct as no cash has come into the business.

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