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Accounting

garvit bharti (CA FINAL) (370 Points)

22 August 2014

hii friends...

FACTS: I am maintaining accounts of an individual propreitor on tally. He is providing me bills of expenditures which he is incurring for his day to day business.Accordingly I am entering those vouchers. Now it looks that after the end of this FY expenses will not that sufficient as it should be.So he will have to bear tax burden.

QUESTIONS:

1. Please tell me the points which are useful for maintaining proper books of accounts?

2. For increasing the expenses for recording purpose what should be kept in mind and which kind of expenses can be shown ?

please suggest

thanks

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6 Replies

Rishit Shah (Creator TallySchool.com Co-Founder BookNagari.com) (221 Points)
Replied 28 August 2014

I think you are maintaining books the best way. Enter every information from the proprietor.

For reducing tax burden, you can show general expenses related to your client's business.

If you can provide the business in which your client is, I can easily give you suggestions.

Send me a private message, if you do not want to disclose here.

Creator and Author - TallySchool

1 Like

garvit bharti (CA FINAL) (370 Points)
Replied 30 August 2014

xactly dear rish*t.... even in the last two years when no accounts were present i had made financials by showing these kinds of genuine expenditures.. Now tell me please in case we show some of the fictitious expenses, what should we do as an accountant?? i mean if i show some expenses ,should i make voucher of those expenses?? and also should i ask the client for bank statement and should record all the debits and credits?? please explain what practically is done. thanks xactly dear rish*t.... even in the last two years when no accounts were present i had made financials by showing these kinds of genuine expenditures.. Now tell me please in case we show some of the fictitious expenses, what should we do as an accountant?? i mean if i show some expenses ,should i make voucher of those expenses?? and also should i ask the client for bank statement and should record all the debits and credits?? please explain what practically is done. thanks xactly dear rish*t.... even in the last two years when no accounts were present i had made financials by showing these kinds of genuine expenditures.. Now tell me please in case we show some of the fictitious expenses, what should we do as an accountant?? i mean if i show some expenses ,should i make voucher of those expenses?? and also should i ask the client for bank statement and should record all the debits and credits?? please explain what practically is done. thanks xactly dear rish*t.... even in the last two years when no accounts were present i had made financials by showing these kinds of genuine expenditures.. Now tell me please in case we show some of the fictitious exwhat sould we do as an accountant?

garvit bharti (CA FINAL) (370 Points)
Replied 30 August 2014

CA Goutam Sharma (Chartered Accountant in Practice) (468 Points)
Replied 30 August 2014

As an accountant you should have accounted genuine entries and paid tax if any. You got convinced by your client to reduce tax BURDEN. You should have convinced him to pay tax LIABILITY and enjoy life hassle free.

1 Like

Rishit Shah (Creator TallySchool.com Co-Founder BookNagari.com) (221 Points)
Replied 30 August 2014

Now whether to show fictitious expenses or not, it is totally up to you on how well you can handle the income tax department.

I suggest what Gautam Sharma said, pay the tax and live life hassle free.

garvit bharti (CA FINAL) (370 Points)
Replied 30 August 2014

Yeah i am agree with both of you.. There is nothing big like evading of tax. I just meant to say that was some of the expenditures of which there is not any bill present.. One of the example is that there are two persons in staff and they are being paid salary in cash upto 12k.. Now how it should be recorded?? Likewise some of the other expenses of which no bill is present ....