P&L A/c in the Trial Balance..Urgent Sir!!!

This query is : Resolved

Rajesh (Querist)
Follow

06 August 2010 Dear Experts,
Is it possible to have P&L A/c (for the current year) in the trial balance itself for the year ended XXXX.
How i have to proceed in such a case?
With regards,
Rajesh

VINOD ARORA

VINOD ARORA (Expert)
Follow

06 August 2010 its not possible to have p&L account balance for current year in the current trial balance in view of the fact that current profit/loss is net outcome of all incomes/expenses and hence as long as income/expenses items are forming part of Trial, you cant derive current profit. This is why only opening balance of p&l is reflected in Trial, which is result of past years/periods.

Message likes : 1 times

Thrissurkkaran Ishtan

Thrissurkkaran Ishtan (Expert)
Follow

06 August 2010 Dear Rajesh,

Whilst I admit that Mr. Vinod Arora is fully correct from a practical point of view, it is possible for the examiner to pose a question with TB showing current year P&L amount and ask the candidates to prepare a Balance Sheet (BS).

It is important to note that such a question can only ask you to do a BS as the P&L is already done and the figure is reflected in the TB. All you should do is to simply proceed to do a BS.

Examiner can also make the question further tricky (rare), by also asking the candidates to pass make some provisions which was omitted whilst doing the original P&L. In such case the candidates will have to do a "bridge P&L" from the current P&L to new P&L by making provisions.

Hope this answers your query.

Message likes : 2 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

siddhesh satardekar

santhosh singireddy

madhu sudan

RAJENDRA PARAKHI

kavita goel

Subscribe Now

P&L A/c in the Trial Balance..Urgent Sir!!!

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA