Hai...
This is Srinivas from Hyd'Bad.
i've one Problem.
when we are creating the SOB. There we've to give the Retained earnings. at that time, system will create one JE. what is that JE.
After year ending some profit or loss will be come. after closing the lost period in particular year. system will generate the JE Automatically, what is that JE..
The above two Question is very IMP for Interview point of view.... also....
am abiding for ur repay...
SOB, Retained Earning & JE?
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- Location: India
Hi Srinivas,
I dont think there is a journal entry created when you enter Retained Earnings account while defining SOB. At the end of year the profit/loss amount gets posted to the Retained Earnings account and there will be a JE. This same gets carried to the Balance sheet.
Plz correct me if Im wrong.
Regards,
Bala.
I dont think there is a journal entry created when you enter Retained Earnings account while defining SOB. At the end of year the profit/loss amount gets posted to the Retained Earnings account and there will be a JE. This same gets carried to the Balance sheet.
Plz correct me if Im wrong.
Regards,
Bala.
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- Posts: 256
- Joined: Thu Aug 07, 2008 3:48 am
- Location: USA
Expenses A/c Dr.
Retained Earning A/c Dr.
To Revenue A/c Cr.
This above entry for Profit Transferring to retained earnings
Expenses A/c Dr.
To Retained Earning A/c Cr.
To Revenue A/c Cr.
This above entry for Loss Transferring to retained earnings
Note: These entries are automatically created by the program when year is end process is executed
Retained Earning A/c Dr.
To Revenue A/c Cr.
This above entry for Profit Transferring to retained earnings
Expenses A/c Dr.
To Retained Earning A/c Cr.
To Revenue A/c Cr.
This above entry for Loss Transferring to retained earnings
Note: These entries are automatically created by the program when year is end process is executed
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- Joined: Wed May 16, 2007 7:21 am
- Location: India
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