I have heard from my colleagues that after an audit report is prepared & accounts are finalized,an entry for profit is passed.Can someone ls tell me what is the entry for the same?Also,what if no such entry has been passed for 2 years?
Neeti (Student) (235 Points)
13 July 2012I have heard from my colleagues that after an audit report is prepared & accounts are finalized,an entry for profit is passed.Can someone ls tell me what is the entry for the same?Also,what if no such entry has been passed for 2 years?
Giridhar S Karandikar
(Team Lead)
(7543 Points)
Replied 13 July 2012
What type of entity is it. whether it's a company, partnership firm or sole proprietor.
Aarush
(Delhi)
(1566 Points)
Replied 13 July 2012
Profit and loss a/c is closed by transfering profit in reserve and surplus a/c , if any of the organization not transfer such entry their opening financial (balance sheet) will not tall i.e.there will be differences in opening balance sheet always.
Aarush
(Delhi)
(1566 Points)
Replied 13 July 2012
If you are talking for company than create reserve and surplus a/c, else transfer in capital a/c
Neeti
(Student)
(235 Points)
Replied 14 July 2012
It is a company.In such case,what is the entry to be passed?
Also what is the entry to be passed for a partnership firm?
mike
(MTO)
(43 Points)
Replied 15 July 2012
Oh! sorry, i could not revion my double entry. yet i can tell you later at. your sum is very simple.
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