How I can close our books of accounts for a fiscal year? In period closing voucher, I couldn’t able to close the income and expense account for the previous fiscal year. Pls. advise if there is any other option to close the same.
In Period Closing Voucher only Equity and Liabilities Accounts are coming.
Hi,
As per the accounting standards, the balance of P&L must be booked in the liability side, as either income or loss, would be owned by the stack holders only. Hence, selecting an account from the Reserves and Surplus from the liability side should be selected. You can make another journal entry for the posting in P&L account.
That is because Income and Expense Accounts are basically being closed by Transferring Profit/Loss amount to Liability accounts, so given Equity and Liability voucher option only is logical.
Manjur Alad.