How will the accounts in the balance sheet be closed at the end of the company’s liquidation?
The company must convert its assets into cash during the liquidation period and close its liabilities accordingly.
If there is money left in the safe, it can be deposited into the bank.
If there is a check received, it can be paid for debts or it can be endorsed to the partners for their profit share or capital receivables.
Receivables from customers are collected
If there is a VAT carried forward and there is no situation to be refunded during this period or if there is but this is not desired, the VAT carried forward can be recorded as an expense.
If there is a fixed asset, it is removed from the records by issuing an invoice.
Loans are paid and closed.
Debts to suppliers are paid.,
Debts to personnel are paid. Severance and notice compensations are calculated and paid.
Tax and SSI debts are paid. Those that are not due by the end of the liquidation are also paid and closed.
Finally, if the balance sheet can be made to remain in the bank with equity, the liquidation profit or loss, if any, remains for the final closing. The remaining amount is paid to the partners as profit distribution and nominal capital payment, and the balance sheet is reset.
The balance sheet and income statement before the reset are given to the tax office.
The above explanations are general in nature and vary according to the status of the accounts in the company’s balance sheet and tax liabilities.
Source: Istanbul Chamber of Certified Public Accountants
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