Last year closing does not match with current year opening

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This query is : Resolved

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It's crucial for your previous year's closing balance to precisely match the current year's opening balance. If a discrepancy exists, it indicates an error that needs investigation. You must identify the root cause of the difference and make necessary adjustments to the relevant account balances to ensure financial accuracy.

Sneha Patil

Sneha Patil (Querist)
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09 September 2020 Hello,

Closing balance of previous year audited balance sheet does not match with current year opening balance.
How to adjust the difference?

CA KARAN SINGH

CA KARAN SINGH (Expert)
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09 September 2020 First of all, this cannot happen. In any situation, the closing balances of the previous year shall be the opening balances of the current year.
Also, You should find the reason behind the differences that occurred between the two, and further if you are required to do some adjustments, then the adjustments will be done in respective account balances in which differences are appearing.