Accounting of non business items.....

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 July 2015 why some of assets and incomes are directly credited to capital accounts instead of proper p&l account treatment...
like interest on FD , municipal taxes (directly treated as drawing)

& if there is any tax implication why such items are recorded in balance sheet ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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18 July 2015 These items are non business items hence directly credited/debited to capital account. For tax workings, after arriving at the business profit Interest on FD will be added for tax workings and municipal tax will be deducted from house property income.

Querist : Anonymous

Querist : Anonymous (Querist)

20 July 2015 but sir , if they are non business items why
they are coming in books ?
we maintain books for business, Then why such non business items comes ? & why should we record it...

instead we can keep separate record for non business items and their tax workings....

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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21 July 2015 yes separate record and tax workings can be made.

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