ACCOUNTING ENTRY TRANSACTIONS ALLOWED IN BOOKS AND IT ACT.

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This query is : Resolved

Kollipara Sundaraiah (Querist)

01 December 2021 SIR,
Sec 44ada it return filed assessee outstanding ledger balance creditor and debtor in books as on dt:31-03-21
Q.no.1:
Cash loan from creditor balance rs:4 lacs(name :A)
Cash loan to debtor balance rs: 5 lacs(name :B)
assessee creditor(A) balance amount rs: 4 lacs transferred to debtor(A) account adjustment entry passed in books and remaing balance amount rs:1 lacs cash receipts from debtor (A) received in f.y.21-22
Q.no. 2:
Cash loan from creditor balance rs: 4 lacs (name :A)
Cash loan from another credtior balance rs:1 lacs (name :B)
Cash loan to debtor balance rs:5 lacs (name:C)
assessee creditor(A)balance amount rs:4 lacs and another creditor(B) balance amount rs:1 lacs transferred to cash loan to debtor rs:5 lacs (C) adjustment accounting entry passed in books in f.y. 21-22.
question:
Assessee above mentioned two transactions accounting entry passed in books accepted it act.

B Sathyanarayanan

B Sathyanarayanan (Expert)

02 December 2021 yes you can , since your transactions are covered under 44ADA , you are showing professional receipts which is taxable @50% , so you your loan is unsecured ,so you can pass books entry for books closing purposes .

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