20 January 2018
I am finalizing Accounts of a Proprietorship business for the F.Y 2016-17. Closing balance of loan taken by the proprietor as on 31.03.2016 as per loan statement is not matching with closing balance of loan taken as per balance sheet for the F.Y 2015-16. May be there was some mistake at the time of preparing the 15-16 Balance sheet. Now if I take opening balance of loans from the 15-16 balance sheet, the closing balance as on 31.03.2017 will not match with loan statement and I cant take opening balance from loan statement also as I have to take the opening balances from the previous balance sheet only as per rules. So what should I do ?
Take the O/B as per balance sheet and check previous year loan status in previous account... After you can get some clarity and transfer the mismatched amount to Proprietor capital Account (Current Account). In case you will find the details in Previous account then transfer the value to the same head...
23 January 2018
Thanks for your quick response. Let me explain in details. Loan amount is 1 Crore (Bank Overdraft). Amount shown in the previous BS Rs. 1 Crore but as per loan statement the closing balance should be 1 Crore 22 Thousand 4 Hundred Forty seven. May be the previous accountant did not follow the loan statement. Now you are saying I should show the mismatch amount of Rs 22447/- under Proprietor capital A/c. Is it ??
24 January 2018
I think this OD account then the Bankers add the Interest amount. But, The accountant not aware the Interest activity and he download Statement before applied the Interest by Bank... So, You will consider the details with your Auditor... And add the details under Interest account after consider your Auditor...
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