Tax (Student) (165 Points)
28 February 2017Assessee has income from 2 different businesses..
One is from Restaurant Business..
Second is Commission from Transporters..
He incurs expenses in both of the cases above..
Can he prepare two different Profit & Loss A/c's (one for each business) and
One single consolidated & merged balance sheet (for both the businesses as well as personal assets)??
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(160332 Points)
Replied 28 February 2017
Yes, but better to exclude personal assets, unless utmost necessary.
Tax
(Student)
(165 Points)
Replied 01 March 2017
| Originally posted by : Dhirajlal Rambhia | ||
 |
Yes, but better to exclude personal assets, unless utmost necessary. |  |
Sir..
But there are some assets which are used for BOTH the businesses above,
like Motor Car, Laptop etc..
Depreciation of the same to be taken in combined P& L A/C or
how to bifurcate the depreciation between the two seperate P & L A/C's??
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(160332 Points)
Replied 01 March 2017
When depreciation is to be charged, it doesn't remain personal asset. It is to be accounted in any one business and depreciation is to be debited from the same business. (Even though it may be partly used for another business)
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