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Entry to reduce profit in tally

Neeraj Desai (Accountant) (53 Points)

07 May 2017

When beginning our Accounts in Tally, we had a difference in opening balances amounting to some 2,00,000.00 which was adjusted into the opening balance for the Profit and Loss account. How can we now show the Profit and Loss account without this figure in order to present this years accounts? What will be the entry to pass to reduce the profit and loss account by 200000 so it won't show in this years accounts. Is there any other way to hide this amount?

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7 Replies

(Guest)

how different comes trace out

and adjust with that heads

prepare profit and lost as per as dont hide any thing which will trouble your

enterprise in future

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Neeraj Desai (Accountant) (53 Points)
Replied 07 May 2017

It is not possible to do so, since the previous accounts was not maintained in a proper manner. Also, the reason to show the reduced amount is just to present this years Balance Sheet without that difference. The Profit is correct, only thing is that the 200000.00 difference was added to it to do away with the "Difference in Opening Balance" error.

Deepanshu Bansal (Article Assistant) (149 Points)
Replied 07 May 2017

Traces the differences and adjust with that And if not able to trace it then adjust the differences with Capital in opening.

(Guest)

WRITE OFF THAT MUCH DIFFERENCE

Neeraj Desai (Accountant) (53 Points)
Replied 07 May 2017

Can you please provide the entry for this. I've been trying since you posted your answer, but cannot figure how to do it. I've entered the difference amount of 200000 as Credit a provision and it appears in the Liabilities Side of the Balance Sheet. Can you please help from here? I'm clueless about how to write it off...