01 September 2010
Hello expert, Does monthly P&L and Balance sheet preparation include these steps: 1. Ledger scrutiny 2. St. of prepaid expenses 3. Making provisions as on last date of month along with TDS effect 4. Drs & Crs reco statmenet 5. BRS 6. passing entries for interest accrued & payable for 1 month. 7. Sch. of FA with depreciation taken for one month. 8. Passing depreciation entries for one month 9. Salary payable entry with effect to PF,ESIC,PT & TDS.
01 September 2010
At the month end, say there are 5 separate provisions 4 individual prepaid entries & single depreciation entry for 6 FA
then after recording the above for monthly P&L & BS, should each entry be reversed in the next month....I mean will there be 5+ 4 +1 reversal entries in the following month?
01 September 2010
For monthly closing , need to considered all you listed above,
Depreication entry need not to be reveresed becasue it will incurred every day/month, so Instead of reversing excess or shortage can be adjusted in the current month, it will not much impact on Financials if your depreciation calculation is correct
Provision entries need to be reversed once the Actual invoice is received
CAclubindia
