Capital and balance sheet of salary person

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For individuals without business income, a separate capital account isn't usually necessary. Their balance sheet will focus on personal assets and liabilities, with the capital account reflecting only salary income and bank interest on the credit side, and drawings on the debit side. There's no profit and loss account or business assets involved.

Kollipara Sundaraiah

Kollipara Sundaraiah (Querist)

28 November 2021 SIR,
how the preparation procedure balance sheet and capital account of salary it person.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

28 November 2021 For persons without business income, Capital account need not be separate. Otherwise there are no separate rules. There won't be P&L account, similarly no business assets in BS.

Pooja Yagnik

Pooja Yagnik (Expert)

29 November 2021 Only Personal Assets, Liabilities and Capital will form part of Balance Sheet.
Capital Account will have Only Salary Income and Bank Interest On Credit Side and Drawings on Debit Side.

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