Follow these steps to close the Profit & Loss account at the end of a financial year.
Step 1: Complete the Year-End Process
Log in to ADDA.
Navigate to Admin Dashboard → General Ledger → Trial Balance.
Select Perform Year End.
Log in to ADDA.
Navigate to Admin Dashboard → General Ledger → Trial Balance.
Select Perform Year End.
Review all accounting entries to ensure they are correct.
Once verified, the Freeze option will appear. Click it to lock the accounting year.
Once verified, the Freeze option will appear. Click it to lock the accounting year.
Step 2: Transfer Balances to Retained Earnings
Click on Automatically Pass Retained Earnings.
Select the applicable Financial Year.
Click Choose Financial Year.
Check the Total Income and Expense figures displayed at the bottom of the screen.
Click Pass Entries into Retained Earnings for Account Closure.
After completing these steps, all Income and Expense accounts will be closed for the selected financial year.