Opening Balance

192 views
User Avatar

Accounts Trainee
61 Points Posted on 08 March 2021
I am posting entries from 1 July 2020. should I put opening balance of indirect or direct expenses ?
0 Reply Share Follow
On 08 March 2021 at 10:56 Report
Replies (3)
Quick Summary
When posting entries from 1 July 2020, the opening balance for the current year should be the closing balance from the previous year. Crucially, only balances from the Balance Sheet (Assets & Liabilities) are carried forward. Direct and indirect expenses, which originate from the Trading or Profit & Loss Account, do not form part of the opening balance.

User Avatar

GST Practitioner & Accounts
15146 Points Posted on 08 March 2021

No  , Closing balance of  last year   will be  Oping  balance  current  year  and  will be  Carried  forward   form  1st  April     from  Balance Sheet  only (  Assets & Liabilities)    Not  form  Trading   or  profit  & Loss Account . You can not carried forward  Direct  & Indirect  Expense . 

2 Reply
On 08 March 2021 at 11:13
User Avatar

Accounts Trainee
61 Points Posted on 08 March 2021
Thank you for help and quick response.
Reply
On 08 March 2021 at 11:19
User Avatar

Chartered Accountant
24588 Points Posted on 08 March 2021
Closing balance on 31.3.19 will be carried forward to 1.4.20
Reply
On 08 March 2021 at 11:55

Leave a Reply

Post Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Recent Topics :

  1. Self assessment tax paid not reflected in ITR2 fil
  2. Tax on nps corpus
  3. Tired converting GSTR-1, 2B & 3B to Clean Exce
  4. TDS on under construction property not deducted
  5. GST on Fixed Assets
  6. GST ITC april 22
  7. GST PAYMENT REGARDING
  8. GST Consultation Required – June–Augus
  9. TDS Code for Salary Payment to Non-Resident Intern
  10. TDS on property

More recent discussions | Post

Related Topics :

Loading