Financial Statements of Sole Proprietors

Illustration 21 (with Trial Balance)

From the following trial balance prepare trading and profit and Loss account and Balance Sheet as on 31.3.2021.

Trial Balance

Particulars CALDAGOGA TENA

(Cr)

Particulars

(Cr)

20,000

Loan (10% Interest)

Opening stock

Purchases.

20,000

3,60,000

Creditors

30,000

Salaries

12,000

Capital

1,10,000

Rent @500 PM

5,500

Sales

41,000

58,000

Machinery Wages

Furniture

6,000

10,000

Electricity

1,100

Trade expenses

3,000

Debtors

21,000

Interest on loan

1,800

400

GST paid

Building

60,000

10,000

Drawings

Bad debts.

1,200

5,70,000

5,70,000

i.

ii.

5 iv.

Adjustments:

On 1.4.2020 scooter worth 10000 was purchased and added to purchases account. Depreciation on machinery, furniture and scooter at 10% and Building at 5%

Outstanding wages` 1000

Prepaid salaries 800 debtors include 1000 which is bad and provision of 10% is required further.

Sunday Wages includes 2000 paid for machinery erection charges.

Proprietor has taken goods costing 2000 for which no entry was made.

viii. Goods costing 10000 was destroyed by fire and insurance claim was received for

*8000.

vi.

vii.

ix.

Closing stock 24000

The manager is entitl commission. to a commission of 10% of the net profit after charging such

X.

23. From the following Trial balance, prepare Manufacturing, account for the year ended 31-03-2021.

Trading and Profit and

Lo

Debit ()

Particulars

Credit ()

Opening stock:

30,000

Raw materials

16,000

Finished goods Work in progress

5,000

72,0

Capital

Purchases:

2,50,000

Raw materials

8,000

Finished goods,

Sales

4,000

Carriage inwards (on R.M.)

IN GST AUDIT EARLIER AUDITED AND CA CERTIFIED FINANCIAL STATEMENTS WERE ATTACHED, BUT IN F.Y. 2020-21 GSTR 9C IS TO BE SELF CERTIFIED BY TAXPAYER. SO NOW QUESTION IS FINANCIAL STATEMENTS TO BE ATTACHED IS SELF CERTIFIED OR CERTIFIED BY CA ?????

while furnishing 26QB TDS Returns amount to be paid shown in 26QB With amount paid + TDS amount or To show only 99% Paid amount ( without TDS Amount ) Please reply . to Generate 16BB TDS Certificate. AND if only paid amount shown 99% is correct or not then 16BB TDS certificate can be revised .

Dear Sir,

We are a Limited company which unlisted.

And can we paid dividend to our shareholders ?
if yes what is producers ?

Pls guide us

Sir,

I want to know the capital gain tax effect on sale of land which was acquired by inheritance. As per rule, for determining cost, cost to the previous owner should be taken as cost for indexation. But I don't know the cost as the same was acquired by father from grand father by inheritance and grand father from grand grand father etc.

SIR,
It assessee small business turnover rs: 30 lacs yearly. if assessee gold loan from banks rs:8 lacs own name rs:14 lacs loan wife name received and rs:10 lacs amount cash loan paid to relatives and friends.
Question:
1.Assessee sales turnover is low and Gold loans from banks rs:14+8= 22 lacs show in balance sheet accepted in it act.
2.Interest collected from cash debtors accepted in it act.

A partnership Firm has been filing ITR 4 under presumption income scheme till FY 2020-21. Now in FY 2021-22 it has not done any business and is not likely to do so in the financial year 2021-22, So its income will be NIL. Will it still be required to file its tax Return for AY 2022-23?
As it may get some business in future, it does not want to surrender its PAN card.

Hi,

I had taken up an IEC registration in 2018. But I dropped the business idea in a few months.

I don't need the IEC anymore.

Now my IEC number has come up in the list to be automatically deactivated by DGFT due to non-updation of profile.

Can I just let the IEC get deactivated by DGFT themselves or should I surrender it myself? Are there any differences between the two? Legally do both indicate closed business activities? And can I close my bank current account mentioned during IEC registration after IEC is deactivated by DGFT?

Thanks in advance for your valuable help and guidance.

In 2010, assessee has purchased agri. land and after that in 2019 he converted it into non agri. land. In 2020-21 he sold that non agri. land for a consideration.
My question is what will be the COA and holding period in the following situation:-
1. If such land was rural agri.land when it was bought in 2010?
2. If such land was urban agri.land when it was bought in 2010?

Whether indexation will be available or not? If yes then from where indexataion will be allowed?

Kindly help me to solve this case.

I want to know that, if I deduct any TDS of a professional person (Honorarium Payment) what will be that, a company deductees (20)or a non-company deductees (21).