Aliasgar Poonawala
(CA)
(180 Points)
Replied 21 February 2012
By using the information of the entire bank statement, you will be able to come across items which would construe income & expense of the assessee, and which would go to P/L account. For a small individual, it would just be fund transfers (cash deposited, withdrawn, etc.), but will be in detail for others.
The loan should have been reflected in the previous year itself, and if they were not, the previous year financials needs to be amended, and receipt of loans is a capital receipt not chargeable to tax, however the interest payments are allowed as deductions. This would also answer your first question, where after showing the receipt of loan, there would be enough cash to cover deposits in the bank. The loan can be shown as cash withdrawn from bank.
Almost same as above.
Hope this helps!
Vaiibhav Gupta
(Founder & Promoter JSR Fincon Inc)
(89 Points)
Replied 22 March 2012
I agree with Aliasgar , as far as your first query is concerned , to make it more simple you can export the bank statement in excel and then further pin down on evry debit /credit identifying it as p&l item or b/s , resultant after ur above exercise will be completed ur trial balance will be ready
further i can be reachd on vaiibhavgupta @ gmail.com
thanks
CAclubindia
