Ask Me Help Desk - Financial Year Closing

Quote:

Originally Posted by Annepureddy

for 2008-2009 audit is completed and now i want post the closing balances for next finacial year as opening. S0 all the Assets and Liabuilities closing for 2008-09 willbe post as opening for 2009-10. The surplus will post in one account in 2009-10 F.Y. So if you check the financial year 2009-10 the total of the opening baalnce debit and credit will show the same total which is correct.

Now my questin is for 2009-10 we have posted the opneing balance . All closing balances for 2008-09 for income and expendite accoutn should eb zero by passing Journal voucher?
Coz i posted the surplus for 2009-10 and i want close all income and exp accounts with Journal vocuer ? Is ti correct ?

I am just trying to understand your problem exactly. The steps involved in closing process are:

1. Close all revenue and expense accounts to income summary through Journal
2. Transfer the resulting balance - profit or loss - to retained earnings (in case of companies_ and capital accounts (in case of proprietorship) through Journal
3. Drawings are transferred to capital account pf the owner through Journal
4. Dividends to shareholders (if any) are deducted from retained earnings through Journal or Cash

After you have done this, the remaining balances will be for assets, liabilities and equity

In the last line you say that " Coz i posted the surplus for 2009-10 and I want close all income and exp accounts with Journal vocuer ? Is ti correct ?' the surplus is for 2008-09 and not 2009-10. This seems confusing.

All transactions are recorded after proper authorization and that through the Journal. You can not pass flying entries. That would not be correct.