Vijay Kr. Mishra (prop.) (576 Points)
06 February 2010
On 31st March 2009, closing stock value was Rs.5,70,000/-. Can i make changes in taking opening balance on 1st April 2009 ? ( i asked because an Income Tax Lawyer told that there is i clause and i can change the opening balance, so i want to know that Clause) THANKS.
Anumanchipalli Sathikonda
(Tax Consultant)
(1559 Points)
Replied 06 February 2010
Mr. Vijay Kr. Mishra
You cannot change the value of opening stock in the books of account. As per the provisions of section 145A you can make adjustments in the statements only .
Best Wishes
Sathikonda
CA Pramod Jain
(manager finance)
(1577 Points)
Replied 06 February 2010
ya opening balance has to be same u can pas entry of 1st april for changes
Varun.T.K
(CA Final, CS Executive)
(365 Points)
Replied 06 February 2010
The closing balance of a period and the opening balance of the same in the subsequent period should be uniform and cannot be altered. If there is any valuation differenc, it can be passed as an adjustment entry and as such, it can be entered into the accounts.
CA. Abhishek K. Pandey
(Manager (Advance))
(901 Points)
Replied 06 February 2010
I agree. You cant make any changes. One more thing, just think......you have changed your opening closing stock value. Then would your trial balance ever meet?????????
sanjay kumar
( tax consultant)
(90 Points)
Replied 06 February 2010
WHY DONT YOU ASK YOUR LAWYER WHAT POINT CAN HE ACHIEVE OR PROVE BY ALTERING THE OPENING BALANCE EXACTLY ON THE 1ST DAY OF APRIL .... THAT HE CANNOT ACHIEVE IF THE REQURED ADJUSTMENT IS MADE ON ANY OTHER DAY THROUGHOUT THE FINANCIAL YEAR ...PLZ ASK HIM ...AND POST HIS REASON ON THIS FORUM
SANJAY
Ameet
(L)
(1678 Points)
Replied 12 February 2010
u can't. If you change the opening that means it tantamount to malafide intention to It Dept
CAclubindia
