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Opening balance difference

GUNASEKARAN.S (Accountant) (122 Points)

03 June 2015

QUESTION : TALLY DATA WAS TRANSFERRED FY2013-14 TO FY 2014-15. NOW I AM FINISHED FY 2014-15. IN BALANCE SHEET SHOWS SOME AMOUNT AS OPENING BALANCE DIFFERENCE. WHAT IS THIS? PLEASE EXPLAIN AND HOW TO ADJUST? THIS IS MY FIRST YEAR (FY 2014-15). SO PLEASE EXPLAIN BASICALLY..AND HOW TO PREPARE A BALANCE SHEET?

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10 Replies

CMA Poornima Madhava (CMA) (13112 Points)
Replied 03 June 2015

I think the opening balance is not carried forward to new company properly, find out which one is missing, enter the same manually for that account

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Kajal K Thorat (CA Final Student) (26 Points)
Replied 03 June 2015

Refer final tally backup of FY 13-14.. Then match the opening balances. Next time, keep it in mind, opening balances should be corrected at very beginning of audit and not at the end. All the Best.

Ashish Saini (Self Employed at Ashish Saini & Associates) (180 Points)
Replied 03 June 2015

Dear Gunashekaran just take print of trial balance of f y 2013-14(closing balances) and financial year 2014-15(opening balances) and compare manually, it is very basic mistake that has arose, can be solved by looking both trial balances .. Good luck.

Ashish Saini (Self Employed at Ashish Saini & Associates) (180 Points)
Replied 03 June 2015

Dear Gunasekaran just take print of trial balance of f y 2013-14(closing balances) and financial year 2014-15(opening balances) and compare manually, it is very basic mistake that has arose, can be solved by looking both trial balances .. Good luck.

Shaswat Modi (Finance) (25 Points)
Replied 03 June 2015

You just take a print of Trial Balance of PY and then check whether all opening balance are properly carrierd forward or not.Check in TB debit and credit total should be same for the respective years.

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sandeep kumar vinnakota (article student) (39 Points)
Replied 03 June 2015

Check the closing stock value

chirag prajapati (student) (42 Points)
Replied 03 June 2015

just take it p.y trail balance with opening, transaction , closing balance and cross tally with current opening balance

ridhi (student) (48 Points)
Replied 04 June 2015

Match p.y closing balance with the current year opening balance. And correct the variances, if any.however there could be reason for difference between closing And opening due to transactions taken place on 1 apl 2014 becoz of that closing of py will differ from opening of c.y. you can check it through bank statement . Gudluck.

GUNASEKARAN.S (Accountant) (122 Points)
Replied 04 June 2015

THANKS FOR ALL OF THEM FOR YOUR VALUABLE REPLY. I HAVE A OTHER DOUBT REGARDING YOUR REPLIES.

WHEN CHANGING THE BALANCES AS PER PY C/B TO CY O/B. SOME OF THE HEADS MENTIONED AS LOANS AND ADVANCES (ASSET) IN PY, BUT CY HEADS COME UNDER SUNDRY CREDITORS / DEBTORS..IN THIS CASE IT IS ANY REASON FOR OPENING BALANCE DIFFERENCE.