monthly P&L and BS
This query is : Resolved
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.
pls reply
thanks
kirti
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.
pls reply
thanks
kirti
01 September 2010
ya it includes every thing
it is similar to the yearly closing
most of companies reverse the monthly provision in next month.
sum companies provide the depreciation also.
dr and cr reco based on company policies and their turnover
it is similar to the yearly closing
most of companies reverse the monthly provision in next month.
sum companies provide the depreciation also.
dr and cr reco based on company policies and their turnover
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01 September 2010
Yes..
It involves all the steps , which are required at the time of preparation of annual accounts. The difference is only the period.
Unless we follow the same principle, we will not able to comparative figures from the annual accounts.
It involves all the steps , which are required at the time of preparation of annual accounts. The difference is only the period.
Unless we follow the same principle, we will not able to comparative figures from the annual accounts.
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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?
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
dnt reverse depreciation entry
reverse all provisions and prepaid entries
reverse all provisions and prepaid entries
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01 September 2010
why shouldn't the depreciation entry be reversed?
01 September 2010
provisions were based on estimations but depreciation is a perfect amount (i.e. rate)
for creating month end provision u will not consider everything as we consider at the year end.
this is my opinion
others opinion also accepted.
for creating month end provision u will not consider everything as we consider at the year end.
this is my opinion
others opinion also accepted.
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
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
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01 September 2010
Ramesh ji,
What about the reversal of entries passed for prepaid expenses? shld they be reversed or not??
For ex. AMC paid p.a. is 12000, for april end MIS prepaid stands @ 11000. In May is this entry to be reversed & prepaid bal on 30th May shld be 10000.
thnx
What about the reversal of entries passed for prepaid expenses? shld they be reversed or not??
For ex. AMC paid p.a. is 12000, for april end MIS prepaid stands @ 11000. In May is this entry to be reversed & prepaid bal on 30th May shld be 10000.
thnx
01 September 2010
No need to reverse What ever entry passed for transferring prepaid expenses to actual paid P&L expenses
If you are paid Rs.12000 for amc per year
you can pass monthly Rs.1000 transfer entry from prepaid to actual expenses
If you are paid Rs.12000 for amc per year
you can pass monthly Rs.1000 transfer entry from prepaid to actual expenses
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