What is the process to close the Books of Accounts in case of a Parnership Firm. what is the basic steps to be followed. How the books are closed in tally. can anybody explained. thanks in advance
Bhavesh (Accounts) (899 Points)
29 March 2013What is the process to close the Books of Accounts in case of a Parnership Firm. what is the basic steps to be followed. How the books are closed in tally. can anybody explained. thanks in advance
Hardeep
(Auditor/Accountant)
(49 Points)
Replied 29 March 2013
1. After making all the changes as per balance shhet with respect to capital a/cs of partners and passing entries for depreciation, we need to arrive at net profit
VArious Income A/c........ DR
To Various Expenses
To Profit & Loss A/c (balancing figure)
2. The net profit so arrived is to be transfered to partners capital a/c in their profit sharing ratio
Profit & Loss A/c........ DR
To Partner's Capital A/c
Dilip Kumar Gupta
(GM - Accounts & Finance)
(23 Points)
Replied 01 April 2013
Book all income and expenses of that financial year ( may be paid or unpaid ).
Check the entry of interest recieveable / payable, salary payables, depreciation, commition payables, TDS payables, TDS recievables, provision for Bad debts, Closing stocks, provision for auditors remunarations etc.
Then you will come to net profit of the company. Now the arrived net profit will be transfered to partners capital a/c into their sharing ratio...
Dilip Gupta
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