Accounting query

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

01 October 2015 Hello everyone... kindly solve my query regarding the assets to be shown in BALANCE SHEET : (Please consider the query in regards to Sole Proprietorship & Partnership firm) Basically, everyone knows that Balance Sheet includes all those assets which are incorporated in business to earn profits. Now my query is should those assets be shown in the balance sheet which generates income which are taxable in source other then PGBP (business income). It should be noted that the income being generated is further invested in business to earn business income. Also such income is increasing the capital of the firm. Take an example of "Rental Income " which is taxable in house property and income so generated is being added to capital. Now should the Building (asset) is to be shown in Balance sheet??

Prashanth

Prashanth (Expert)
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05 October 2015 Hi,
Simple: All the assets which are owned by the entity, should be shown in the books off account, whether they any income or not.

Querist : Anonymous

Querist : Anonymous (Querist)

05 October 2015 Sir...i think personal assets...like jewellery, car for personal usage...etc...should be avoided for the sake of business entity concept....

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