Wrong opening balance taken for reserves&surpl audtd b.sheet

This query is : Resolved

Alex X Gonsalves (Querist)
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20 April 2018 Dear Madam/Sirs,

As a society Accountant, discovered an error in Reserves & Surplus opn balance FY2016-17 of 5L short, which affects closing bal. This is offset by Investment A/c of equal amount in asset side. Now since closing takes place in FY 2017-18, this error noticed, and need to know what action needs be taken ? Income tax return filed from income statemet which is somehow correct. Error only in audited balance-sheet 2016-17. Financial statements not yet filed in Registrar of Societies FY2016-17

What are the implications and what needs be done in FY 2017-18 closing.

Thanks n regards Alex G.

Read more at: https://www.caclubindia.com/forum/error-in-audited-balance-sheet-of-fy-2016-17-quot-res-amp-surplus-458691.asp

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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20 April 2018 Correct the error in FY 2017-18 closing file the audited accounts with Registrar of societies as audited. No consequences.

Alex X Gonsalves

Alex X Gonsalves (Querist)
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20 April 2018 Thanks Mr. Seetharaman for the prompt reply, kindly share how this could be done - entry wise? Thanks again, Alex G.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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20 April 2018 Credit reserves and surplus 5 lacs and debit the asset side mistake 5 lacs.
Asset side also you should have committed mistake.

Alex X Gonsalves

Alex X Gonsalves (Querist)
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20 April 2018 Yes Mr Seetharaman, Assets FD undervalued by 5 lakh, Now I should do the first entry as you said and also do a second entry for FD in the same manner?

Thanks and regards
Alex G.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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20 April 2018 Welcome........................

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