Arokiya Raj (3 Points)
08 August 2023
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177824 Points)
Replied 08 August 2023
May I know what will be use of the account when it will not reflect actual financial statement for whole year?
BTW, you can choose the temporary figure balancing the remaining assets side!!
NARENDRA
(ACCOUNTS MANAGER)
(1994 Points)
Replied 08 August 2023
Is it the very first year of maintaining books of account ?? if yes ........... then ....... you will have to calculate all the basic things that the owner adds to start his business ( basically assets including fixed assets like shop, furniture, electrical accessories, computer , stock, cash in hand etc. ) that all including means the opening capital . Also you will have to check whether he is taking any loans from banks or others.
Arokiya Raj
(3 Points)
Replied 08 August 2023
NARENDRA
(ACCOUNTS MANAGER)
(1994 Points)
Replied 08 August 2023
take the previous year's audit report , their closing balances are the opening balances of this f.y.
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 08 August 2023
Eswar Reddy S
(CFO- at NHTF)
(58270 Points)
Replied 09 August 2023
Yasaswi Gomes new
(Finance )
(4514 Points)
Replied 11 August 2023
Opening balance has an disadvantage. If you have receivables since first year, you will see the opening balance in the fifth year even if you create a new ledger in later years. What will happen to new PPE which is a different class of assets per say
Yasaswi Gomes new
(Finance )
(4514 Points)
Replied 12 August 2023
On a second thought, what you recognise in payments or purchases is the opening balance. I'll have to check the dates
CAclubindia
