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Accounts finalization accounts

Sayed Nabil (297 Points)

13 June 2021

how to finalize books of accounts of a turnover 5 to 10 cr firm

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CA Altamush Zafar (GST Consultant) (15907 Points)
Replied 13 June 2021

Assuming that all regular entries are posted and you are using an ERP software.
Calculate depreciation,
Value closing stock,
Obtain balance confirmations from debtors and creditors,
Create bank reconciliation,
Identify provisions,
If you are a corporate calculate deferred tax,
Pass journal entries for the above.
The ERP will automatically generate Financial Statements

CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 13 June 2021

Analyse all the debtors and creditors balance by confirmation and finalize the results with provisions if any.

Verify the opening and closing stock
Purchase and sales should be properly analysed.

Fixed assets should be capitalised along with proper rate of depreciation.

Confirm bank and cash balances by bank book and cash book along with reconciliation.

P/L account should be properly draw along with posting of entries

yasaswi gomes (My grammar is 💯 good I) (7290 Points)
Replied 13 June 2021

Use erp. Before erp, I think there used to be big building filled with people doing book keeping. It’s interesting to know how big firms finalised accounts in 1960’s. I guess people used to send posts, walk around the office to gather information and tax authorities must have had given extra five month time to do the filings. ;) Accountants also used to shout at everyone and push everyone in the offices to do the job properly. I also heard they used to slap young interns if they made errors.