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Carry over in Accounting

Carry over means to transfer of journal total or the balance of account from one page to other or from one period to other. Instead of using carry over, we use carry forward or C/F. Both carry forward and carry over meaning is same. All fixed asset's balance will go to next financial period because these accounts are not closed by transferring them to profit and loss account. So, carry over of fixed assets' account is must. In some current asset account may be the balance which will transfer to next period because these accounts are not closed. For example, our debtors have paid just Rs. 10000 but we have to take Rs. 11000. Still, we have to take Rs. 1000 after his payment of Rs. 10000. Due the end of financial period, we will carry over the Rs. 1000. with carry over debtor's receivable balance in the accounts, we easy remember what amount will we have to take from debtors.

Neither income or expenditure account will be carry over from one period to other period because all these accounts balance will transfer to profit and loss account for knowing net performance of business.

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  1. We are a Municipality. We are in the process of locating a new auditor and I have a question. When working with a budget for the upcoming year how do we show a Carry over of income (American Rescue Funds) that was received in 2022 but will be expensed in 2023?

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    1. Did you manage to solve this problem?

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Accounting Education: Carry over in Accounting
Carry over in Accounting
Accounting Education
https://www.svtuition.org/2012/05/carry-over-in-accounting.html
https://www.svtuition.org/
https://www.svtuition.org/
https://www.svtuition.org/2012/05/carry-over-in-accounting.html
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