Hi,
On passing the period closing voucher, we noted while the ledgers and financial statements were updated (all profit and loss items moved to the respective closing account head) the chart of accounts was not.
Please note that the income of INR 2 and expense of INR 0.18 were transferred to retained earnings for FY22 and the journal entry nullifying the P&L accounts was passed on submitting the period closing voucher.
However, the chart of accounts showed the updated retained earnings amount along with the original income and expense.
Can anyone please explain why this happens? Thanks for the help.