Question about close fiscalyear

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?

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.

This topic was automatically closed 24 hours after the last reply. New replies are no longer allowed.