Monthly closing of books of accounts

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This discussion explains the process of monthly book closing, which involves recording all daily transactions like sales, purchases, and inventory changes before the month's end. It clarifies that the balance sheet and profit & loss statements are integral parts of this process. To ensure completeness, confirmation from relevant departments is recommended, and the closing should ideally be finalised by the last day of the month.

CA Parul Saxena

CA Parul Saxena (Querist)
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03 November 2022 can someone please guide how to do monthly closing of books of accounts? In our org annual closing only is there so i have no idea of monthly closing..

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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03 November 2022 In the monthly closing process, all daily sub-processes - sales invoicing, sales ledger, purchase ledger, inventory transactions, changes in fixed assets - are recorded as soon as they occur before the last day of the month.

CA Parul Saxena

CA Parul Saxena (Querist)
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04 November 2022 Suppose oct 2022 month end close to be completed by which date? WHether Balance sheet and P/L are part of month end closing process?
And how to ensure that all the entries have been recorded for a particular month? whether confirmation from the respective department is supposed to be sought?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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04 November 2022 It should be on 31st October.
Yes BS and p and l part of month end closing.
Yes get it confirmed.

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