HOW TO GET THE PROPRIETORS CAPITAL FIGURE IN BALANCE SHEET (ITR3)

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This discussion addresses how to find the proprietor's capital figure for a balance sheet when starting out in futures and options trading. The advice clarifies that business accounts don't need to include personal assets. The proprietor's capital can be any amount, provided its source (savings, loans, etc.) can be substantiated through bank accounts, and it's not directly tied to the business's income.

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12 June 2023 Dear Sir Madam

I only started trading in future and options last financial year . Earlier I used to trade in equities only . Now my question is where to get the proprietor capital figure to start a balance sheet.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

12 June 2023 You can prepare the financial statements for business account only; need not club personal/capital assets to it.

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12 June 2023 Hello Sir

Thanks for your prompt response .My turnover was very miniscule around 1000/- rs Can I put the proprietor capital as 5 lacs to start with.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

12 June 2023 The capital has no relation with the said income earned through F&O business.
You should have the source of investment or savings or loan/s routed through bank accounts, why just Rs. 5 lakhs it can be anything.

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12 June 2023 Thanks sir I appreciate it

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Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

12 June 2023 You are welcome.

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