26 September 2010
Dear Experts, There is a P&L balance in Trial balance itself. First i did not gave effect to the p&l balance in the financial statements. Then the balance sheet did not tallied (In other words P&L balance existed in the T.B. and the difference between liabilities and assets side of the balance sheet was same.)Therefore i credited the P&L balance in Trial balance in the current account of the partners, the balance sheet got tallied. My doubt is the way i tallied is right? With regards, Rajesh.
27 September 2010
P/L a/c may be in TB. But you have treated wrongly. First , you check nature of transactions , which is appearing in this account. May be some provisions, increase/ decrease in stcok etc.
After verifation the nature of transaction , give the proper treatment in balance sheet / P/L account.
28 September 2010
Hi Rajesh, treatment given by u is not correct. P/L A/c in T.B. means profits not prevoiusly distributed by the partners. It will be taken as opening balance in P/L Appropriation A/c. Regards, CA Shakuntala Chhangani
CAclubindia
