We have client that is struggling to close a fiscal year. The business is closing down and they decided to pass manual closing entries.

Should they pass opposite direction XXCLL journal entries in current year with net profit going to retained earnings and reverse the entries in the first period of the next fiscal year with obviously the net profit of the current year going into retained earnings?

At present, balances are doubling up if they only process carried forward balances in the next year. (NA-TRLBAL)