My company (US based) wants us to follow the below procedure for passing the closing entries, please let us know whether is it allowed under Indian income tax... if any apprehensions please let us know...

1) Closing entries to be passed as on 31st March 2013
2) The same entries has to be reversed on 01st of April 2013
3)Again same entries has to be re passed as on 02nd of April 2013.

Request you to reply me at an earliest...
You can call me or e mail me at below address

[email protected]
9886371961

Not understanding indian law but usually closing entries are not posted twice.

The purpose of closing entries are to make adjustments to the ledger balances for such items as depreciation, accruals and prepayments, provisions and so forth.

Some of these will be reversed, some might not require reversal as in depreciation and provisions

Quote:

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Originally Posted by paraclete

Not understanding indian law but usually closing entries are not posted twice.

The purpose of closing entries are to make adjustments to the ledger balances for such items as depreciation, accruals and prepayments, provisions and so forth.

Some of these will be reversed, some might not require reversal as in depreciation and provisions

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Thank You for your reply.