Old bank account to be introduced in financials

Not good practise.

By the way what's the balance in the missed bank acc?

You should account as Prior Period Item as per AS-5

add old bank account by entry

bank a/c dr.

 to capital a/c

narration- bank account adjusted.

Originally posted by : CA.Vinita Gupta
	You should account as Prior Period Item as per AS-5

Hi Vinita, Thanks for the reply

AS 5 requires recording Prior period items in Profit and loss account. However, in the query listed above, we have to introduce the bank account as an asset in Balance Sheet.

If the bank has balance and interest is earned you will need to account that too