India Whether previous year entries to be considered while creating current years financial statement

[Rituparna Duttagupta]

I was creating current years financial statement I. E. Balance Sheet and P&L statement from the t-accounts. I have created the t-accounts of balance sheet items and p&l statements items separately. Now I have to populate the balance sheet and p&l statements of the current year. Now my question is whether I have to take previous years balances of the respective items to the current year statements? If yes, then should the debit balances of asset account and credit balances of liabilities account be added and vice versa?
Please let me know.

 

[Fidget]

Yes, but only for balance sheet items - P&L items do not have an opening balance because the overall profit/loss is taken to retained earnings in the balance sheet at the end of the year, so all P&L accounts have a zero opening balance in the new year.