When beginning our Accounts in Tally, we had a difference in opening balances amounting to some 2,00,000.00 which was adjusted into the opening balance for the Profit and Loss account. How can we now show the Profit and Loss account without this figure in order to present this years accounts? What will be the entry to pass to reduce the profit and loss account by 200000 so it won't show in this years accounts. Is there any other way to hide this amount?
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Entry to reduce profit in tally
Replies (7)
It is not possible to do so, since the previous accounts was not maintained in a proper manner. Also, the reason to show the reduced amount is just to present this years Balance Sheet without that difference. The Profit is correct, only thing is that the 200000.00 difference was added to it to do away with the "Difference in Opening Balance" error.
Traces the differences and adjust with that And if not able to trace it then adjust the differences with Capital in opening.
Can you please provide the entry for this. I've been trying since you posted your answer, but cannot figure how to do it. I've entered the difference amount of 200000 as Credit a provision and it appears in the Liabilities Side of the Balance Sheet. Can you please help from here? I'm clueless about how to write it off...
P&L Acc Dr.
To Capital A/c
To Capital A/c
I'm trying to write it off as suggested by samir... How is that done?
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