Accounting treatment

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Kumar

Accountant

224 Points Posted on 28 January 2015

sir, i am preparing books of accounts for proprietors having small office. I would like to know the accounting treatment for the following translation

(1.)______ WHILE ENTERING OPENING BALANCES. I FOUND THAT OPENING BALANCE FOR PNB IS NOT ENTERED IN LAST YEAR BALANCE SHEET. THIS ACCOUNT HAS NOT BEEN TAKEN IN LAST YEAR. I HAVE TO TAKE THIS BANK IN CURRENT YEAR SO HOW TO TAKE OPENING BALANCE & HOW TO ADJUST THE OPENING BALANCE FOR PNB A/C [ACTUALLY THEY HAVE 2 BANK ACCOUNTS, ONE HAS TAKEN IN LAST YEAR BUT FORGET TO TAKE PNB A/C BECAUSE NOT MUCH TRANSACTION IN THAT]

(2.) ________DEPRECIATION ON FIXED ASSETS ARE NOT TAKEN IN LAST YER, SHOULD I CONTINUE THIS OR DEPRECIATE ASSETS IN THIS YEAR

(3.) ________ THERE IS security deposit- TPDDL FOR NEW CONNECTION. SO IT WOULD BE EXP OR CURRENT ASSETS PLEASE CLARIFY THE ABOVE ENTRIES,

THANKS IN ADVANCE

Replies (4)

chandra n devadiga

ARTICLED ASSISTANT

31 Points Posted on 28 January 2015

1) bank acc dr -xxx ( current asset banks) To rectification account-xxx(current liability acc head) Take this year opening balance 2)rectification account dr -xxx To fixed asset accoun t -xxx Calculate last year depriciation and pass this entry 3)it is current assest... Take it under deposit head

Akhil Sharma

Service

141 Points Posted on 02 February 2015

Dear Kumar,

I am not able to understand that when PNB balance was left out, your trial balance would not have balanced because of the same. Moreover, the depreciation has not been accounted. In case the accounts are not subjected to audit, my suggestion is to revise the previous year financial itself. This will take care of your points 1 & 2. for point 3, the entry will be

Security Deposit ...Debit

To Bank / Cash

And security deposit will be classified under "Loans & Advances" under Current Assets.

Kumar

Accountant

224 Points Posted on 04 February 2015

MY QUERY HAS BEEN SOLVED, THANKS FOR YOUR ATTENTION

PLEASE TELL ME, I HAVE TO SUBMIT PENDING ITR FOR AY 2012-13. E- FILLING IS NOT SUPPORTED DUE TO LATE PERIOD, SO HOW TO SUBMIT THE RETUEN NOW. RETURN IS NIL