How prepare books of accounts

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 March 2010 Hi,

This is Giribabu, I completed my PE-II recently. Anybody can help to prepare books of accounts for one small provisions shop.

Thanks,

Giribabu Ch

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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30 March 2010 As per income tax act,maintainance of book of accounts is required only if :-

1. In the instances of the following profession, maintenance of
books of accounts is compulsory:
- Legal
- Medical (Form 3C has been prescribed as a Daily Case Register)
- Engineering
- Architectural
- Accountancy
-Technical Consultancy
-Interior Decoration
- Profession of Information Technology
- Company Secretary
- Authorised representative, and
- Film Artist
2. Other than above, maintenance of books of accounts is
compulsory if:
(a) If income exceeds 1.20 lacs or the turnover exceeds 10.00 lacs
in any three year preceding the previous year , or
(b) in the first year of the business, the turnover or income is
expected to cross the above limit, or
(c) Profit claimed in the following businesses is lower than the
deeming provisions:
- Profits and gains of business on presumptive basis u/s 44AD
- Playing, Hiring or Leasing Goods Carriage u/s 44AE

If it is small shop having less than 10 lac turnover, there is no need to maintain books of account. if exceed, the you have to maintian cash book. sale book, purchase book.