P&L Balance in trial balance...Urgent Sir!!

This query is : Resolved

Rajesh (Querist)
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26 September 2010 Dear Experts,
There is a P&L balance in Trial balance itself. First i did not gave effect to the p&l balance in the financial statements. Then the balance sheet did not tallied (In other words P&L balance existed in the T.B. and the difference between liabilities and assets side of the balance sheet was same.)Therefore i credited the P&L balance in Trial balance in the current account of the partners, the balance sheet got tallied.
My doubt is the way i tallied is right?
With regards,
Rajesh.

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
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27 September 2010 P/L a/c may be in TB. But you have treated wrongly. First , you check nature of transactions , which is appearing in this account. May be some provisions, increase/ decrease in stcok etc.

After verifation the nature of transaction , give the proper treatment in balance sheet / P/L account.

shakuntala chhangani

shakuntala chhangani (Expert)
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28 September 2010 Hi Rajesh, treatment given by u is not correct. P/L A/c in T.B. means profits not prevoiusly distributed by the partners. It will be taken as opening balance in P/L Appropriation A/c.
Regards, CA Shakuntala Chhangani

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