Closing books of accounts

1. After making all the changes as per balance shhet with respect to capital a/cs of partners and passing entries for depreciation, we need to arrive at net profit

VArious Income A/c........ DR

To Various Expenses

To Profit & Loss A/c (balancing figure)

2. The net profit so arrived is to be transfered to partners capital a/c in their profit sharing ratio

Profit & Loss A/c........ DR

To Partner's Capital A/c

Book all income and expenses of that financial year ( may be paid or unpaid ).

Check the entry of interest recieveable / payable, salary payables, depreciation, commition payables, TDS payables, TDS recievables, provision for Bad debts, Closing stocks, provision for auditors remunarations etc.

Then you will come to net profit of the company. Now the arrived net profit will be transfered to partners capital a/c into their sharing ratio...

Dilip Gupta