HI! At the year end how can we make 0 the starting balance and also how can we pass the entries in the Profit and Loss account. The P&L account needs to be created by us or is existing?
Accounts on profit & loss statement never have any starting balances. That’s because any report involving P&L accounts is for period of time.
So if you are asking how to set balances to zero, do you mean how to make them start from zero on Summary page? If so, use Set period button on Summary screen.
The first question is how I will settle the starting balance to 0. I started the program from 1.9.15 with few starting balances. And with which account should be settled.
Regarding the P&L all income and expenses accounts should be settled to 0 at the year end. How we can proceed with that.
Thank you.
Who says all income & expense accounts should be settled to zero at the year end? This is something which has been done when people were writing out ledger books manually. It’s pointless in computerized accounting systems.
By changing the Set Period, (say to 1.1.16), will automatically zero the P&L accounts for the start of the 2016 year and also update the retained earnings. You don’t need to manually do this
I tried changing the set date but the starting equity balance is not becoming 0.
That is correct. Equity is a balance sheet account, which makes it perpetual. Equity is your investment in the company, and it does not disappear at the start of a new accounting period. The same is true for assets and liabilities. To understand more about account types, I recommend beginning with Chart of Accounts | Explanation | AccountingCoach. Then browse further around that excellent site.
Yes I know Thx a lot. I thought that the opening balances will move automatically. Now I need to ask you why we can’t export in excel or csv the reports?
You can export reports to Excel. There is a Export button in bottom-right corner when viewing a report.
You do not export as an Excel file. You export as a TSV file, then open Excel and import the TSV file. Exact procedures will depend on your operating system and Excel version. See Excel Help for instructions. It is very simple.