Question

Difference between opening ledger ( ledger on 1 april ) and closing ledger ( ledger on 31 march ) .

Answer 1

Dear Student,

At the start of the year (i.e. Apr 01), the opening balances of all accounts (be it asset, liability, capital, revenue or expense) is brought forward in the books of the business from last year. And at the year end (i.e. Mar 31), the closing balances of all accounts (particularly the real and personal accounts) are determined so as to record them in the Balance Sheet of the firm. Also, you must know that these closing balances of the current year become the opening balance for the next year.