YEAR END ENTRIES

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 November 2009 Pl. tell me the jouranl entries to be passed in the books at the year end to close the books like, transfer of profit to P&L account, Gen. reserve, Proposed dividend, tax on dividend, closing stock, Provision for tax, deffered tax, unclaimed dividend, etc.

CA. Rishabh Mittal

CA. Rishabh Mittal (Expert)
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22 November 2009 1. Please note that amount of profit is not seperately transferred to P&L A/c. Instead, P&L A/c in itself shows the balance of Profit & Loss after transfers made to Gen Reserve, Prop Div., Propv. for tax, etc.,

2. Journal Entries....
- For transfer to Gerenal Reserve
Dr. P&L Appropiation A/c
Cr. General Reserve

- For Proposed Dividend
Dr. P&L Appropiation A/c
Cr. Proposed Dividend
Cr. Provision for tax on Dividend

- For Provision on Tax
Dr. P&L A/c
Cr. Provision for Tax

- For Deffered Tax
Dr. DTA
Cr. P&L A/c

OR

Dr. P&L A/c
Cr. DTL

- Closing Stock - It is seperately valued & entered into books of accounts as
Dr. Closing Stock
Cr. Trading A/c

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