Preparing Balancesheet

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54 Points Posted on 06 October 2020

I am preparing a balance sheet for the first time for my client. 

We have been filing ITR since 2013-14, but have never prepared a Balance Sheet, since there were only Rent receipts and miscellaneous expenses.

Now I am having opening balances from Bank account, but I am not sure of where to post other effect of the Opening balance from Banks.

Shall it be adjusted against Capital account. Like I am having opening dr balance of Rs.10000 from Axis bank, so shall I post this balance to Capital Account as a credit balance as other effect.

How to adjust opening balance from Banks, kindly advise.

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On 06 October 2020 at 16:01 Report
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Quick Summary
This discussion addresses the common challenge of preparing a balance sheet for the first time, specifically focusing on how to handle opening bank balances. The advice provided suggests that opening bank balances, such as a debit balance from a bank account, should be reflected in the capital account. Additionally, it clarifies that an opening entry in the general ledger journal is used to record all assets, liabilities, and equity as opening balances for the current accounting period.

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Tax consultant
5895 Points Posted on 06 October 2020
Your axis bank is a savings account
a current account or a cash credit account
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On 06 October 2020 at 16:44
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6 Points Posted on 07 October 2020
Yes show it under capital account..along with that you can even show the assets owned by the assessee
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On 07 October 2020 at 15:16
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Master in Accounts & high court Advocate
9620 Points Posted on 08 October 2020

The opening entry can now be recorded in the ledger using the general ledger journal. The opening balance entry is as follows. The journal records the assets, liabilities and equity of the business in the general ledger as opening balances.

A journal entry by means of which the balances of various assets, liabilities, and capital appearing in the balance sheet of the previous accounting period are brought forward in the books of a current accounting period is known as an opening entry.

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On 08 October 2020 at 14:10

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