Neeraj Desai (Accountant) (53 Points)
07 May 2017When 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?
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.
Neeraj Desai
(Accountant)
(53 Points)
Replied 07 May 2017
CA Rashmi Gandhi
(Chartered Accountant)
(86318 Points)
Replied 07 May 2017
Neeraj Desai
(Accountant)
(53 Points)
Replied 07 May 2017
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