At the end of the year, to settle the profit & loss statement and move the balance (profit/ loss) to balance sheet, follow the steps listed below.

Step 1:- Group Name

Under account head of Balance sheet, create a group with the name: Profit & Loss Group (name should be same as specified) with no parent group (parent group will be blank)

Before creating, please ensure the group does not exist already.

Step 2:- Ledger Name

Under the Profit & Loss Group, create a Ledger with the name: Profit & Loss A/c (name should be same as specified)

Before creating, please ensure the group does not exist already.

Step 3:- Pass the JV

3.1- For Profit

Profit & Loss A/c---------Dr

   To Capital A/c (This ledger could vary as per your COA. It could be R&S as well)

Note: Ledger of "Profit & Loss A/c" should be selected having Group Name "Profit & Loss A/c" whereas amount transferred should be classified under "Capital" Group Name.

3.2-For Loss.

Capital A/c-------Dr (This ledger could vary as per your COA. It could be R&S as well)

    To Profit & Loss A/c

Note: Ledger of "Profit & Loss A/c" should be selected having Group Name "Profit & Loss A/c" whereas amount transferred should be classified under "Capital" Group Name.