Question about close fiscalyear

Support User
1

Hi,
In a company, I have a profit of Q3,000 in the first year.
Both the balance sheet and the income statement show the same amount, Q3,000.

In the second year, there is a profit of Q5,000.
The balance sheet shows a balance of Q8,000, while the income statement shows Q5,000.

Both are generally correct, but they don’t match because the amounts are different.

So, if I make an move to record the profit, how should it be done?

And also, how would I determine the income statement if I reset the income and expense accounts to zero, which is the closing entry?

2

Income statement accounts are non -deferral so at the end of each fiscal year they should be balanced to balance sheet following your country rules.
There is a wizard to create this draft move on the ending ajustement period. Usually this mouvement is completed with the company taxes on revenue etc.