Sir, maybe there is a mistake in step 7 account name is opening stock or closing stock. If it is opening stock for last year then why we are closing it please explain😇
No mistake. Suppose you r closing year 2017. Your opening stock for year 2017 was actually the closing stock of year 2016. Similarly when you will close year 2017. Then your opening stock for year 2018 will be the closing of year 2017 not 2016 balance you will continue as opening. When you will practice, you will understand.
I have two doubts. Please clarify. 1) Why do we need to close Inventory accounts to Income summary account? Inventory is an asset for us and therefore, isn't it a permanent account? 2) If we should close inventory accounts, then Under perpetual inventory method, do we still need to close opening stock to Income summary and closing stock to income summary?
1) you will close inventory to update the opening stock for new year. 2) under perpetual inventory system you will close cost of goods sold account. As Opening Inventory ND purchase acts will not exist under perpetual system
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Very help full . This type of accounting videos was waiting . Now got it
perfect video for accounts closing, thanks for sharing, it will definitely help a lot of accountants who are new to the profession
Thank you
thank you very much for explaining well
thank you so much for explaining us well
nice sharing
Well done,very well explained, thank u for sharing such a great knowledge!
Beautifully explained, thank you
thank you, its helpful for me
perfectly easily understandable stuff 👌👍
Excellent sir... Thankyou
Thank you for your efforts
Thank u for making such an outstanding video
I have one request could u do a practical question of the same
Knowledgeable. Good video
Assalamoalykum Brother, very impressive video, are you providing accounting Tutoring? in either case please let me know. Jazakum Allah khier
Wasalam Sister,
I am sorry. For now, I am not offering any tuitions. Quite busy in some projects.
Regards
@@masteringaccountingskills7717 hopefully you are planning for that project in near future
Sir, maybe there is a mistake in step 7 account name is opening stock or closing stock. If it is opening stock for last year then why we are closing it please explain😇
No mistake.
Suppose you r closing year 2017.
Your opening stock for year 2017 was actually the closing stock of year 2016.
Similarly when you will close year 2017.
Then your opening stock for year 2018 will be the closing of year 2017 not 2016 balance you will continue as opening.
When you will practice, you will understand.
I have two doubts. Please clarify. 1) Why do we need to close Inventory accounts to Income summary account? Inventory is an asset for us and therefore, isn't it a permanent account?
2) If we should close inventory accounts, then Under perpetual inventory method, do we still need to close opening stock to Income summary and closing stock to income summary?
1) you will close inventory to update the opening stock for new year.
2) under perpetual inventory system you will close cost of goods sold account. As Opening Inventory ND purchase acts will not exist under perpetual system
Does the Income Tax for 2021 reduce the retained earnings of 2021?
Profit afrer tax will go to retained earnings
@@masteringaccountingskills7717 Thanks! In the GL income tax expense would be posted in step 6 right?