06 February 2023
1) Is Statement of Comprehensive Income also an Account like P&L Account found in the General ledger which is debited or credited by means of closing/transfer Journal Entries for preparation of Annual statement of Accounts. I realise that P & L shown shown to the world ouside is the replica of the Ledger Account of the business Entity for all practical purposes. To elaborate, I wish to say as under.
1) P &L Account is debited and expense accounts are credited; income accounts are debited and P & L Account is credited in order to close the Income and expense accounts in the normal course, by means of a closing Journal entry, as a year end exercise. These are normally called Temporary Acounts. Permanent Accounts are not closed as they are carried forward year after year for being shown in the Balance sheet. For Example, Different type of Reserves, credit balance of P & L Account, Share Premium account.etc. What JE is passed to close OCI Account? How AOCI account is reflected in balance sheet? Is it the closing balan ce of AOCI Account that is shown in Balance sheet or different accounts entering the AOCI Accounts?
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