Income tax

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Yash Dave (Querist)

05 June 2014 how to make profit & loss a/c and balanc sheet for the person whos business is of purchasing car in auction biding and then sale the car to customers for eg if he purchase a car in auction of rs 1,00,000/- and sale it in 1,50,000/- so how to make p&l a/c and balancsheet for it pl explain in brief

Amol S Joglekar

Amol S Joglekar (Expert)

05 June 2014 not much difference from the normal norms. In balance sheet it will be shown under the closing stock, if any..

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Nikhil Kaushik

Nikhil Kaushik (Expert)

06 June 2014 the cars purchased wont be included in fixed assets. You show cars bought as purchases and cars sold as sales. Expenses incurred to refurbish cars will be included in direct expenses. cars unsold at the year end will be included in the closing stock at lower of cost or realizable value.

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CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)

07 June 2014 it is a case of a dealer in car all purchases shall be direct exp under purchase and sale in sales only all exp to make car ready for selling will be direct exp.

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