Accounting treament

Tax queries 236 views 1 replies

Guest

mr a purchase a flat and mr b pays its installment

mr a is in the tax audit and filled its return but dont show any ledger with mr b

mr b yet to fill the return

question is what mr b should show in books for mr a for which he pays the installment

since mr a has not show any transaction for b

Replies (1)

Guest

You say that Mr A is audited. so he must have shown flat and housing loan against that flat in balance sheet. How has he shoun payment of installments? through cash? (bec he has not shown a/c of Mr B)

If Mr B is your client, Mr B should show the correct position in own BS ,ie, he has given loan to Mr A by paying his loan installments. mr A could consider revising the returns.