KVP MATURED BUT NOT DRAWN IN TIME

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This discussion addresses two accounting queries. Firstly, it explains how to reflect a matured Kisan Vikas Patra (KVP) that wasn't encashed on time in the balance sheet for AY 2020-21, advising to adjust the opening cash balance and report accrued interest in the ITR. Secondly, it details the depreciation calculation for a car purchased and sold within the same period, including how to account for taxes in the total cost and report any profit or loss on sale in the balance sheet.

TARAK KUMAR ROY

TARAK KUMAR ROY (Querist)
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29 March 2020 KVP PURCHASED ON 20.10.2010 OF RS.2000/- BUT NOT ENCASH ON THE DATE OF MATURITH ON 20.05.2019 DUE TO LOSS OF ORIGINAL CERTIFICATE. IN WHAT WAY IT WILL BE SHOW IN BALANCE SHEET FOR THE A.T. 2020-21?

Spurto Consultancy Services

Spurto Consultancy Services (Expert)
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29 March 2020 Adjust your opening Cash balance with Rs. 2000 i.e, purchase amount of KVP.
For the interest which have accrued over the years, report all the interest in your ITR to be filed for the AY 2020-2021.

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TARAK KUMAR ROY

TARAK KUMAR ROY (Querist)
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30 March 2020 a car had purchased on 13/01/2016 of Rs.944278/- (C.P. without tax/GST) for personal use and the same was sold on 22/08/2019 worth Rs. 520000/-. There were no development expenses during these periods. Life time was expected 8 years. What is depreciation total amount? If loss- how to show in Balance Sheet for the A.Y. 2020-21?

TARAK KUMAR ROY

TARAK KUMAR ROY (Querist)
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30 March 2020 Thanks for your reply on 29.03.2020 for KVP issues

Spurto Consultancy Services

Spurto Consultancy Services (Expert)
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30 March 2020 For your depreciation query:
1. The total Cost of the Car should include Taxes because no input was taken on cost component
2. On the basis of the cost given by you, Total dep will be Rs. 4,48,097.
3. There will be profit of Rs. 23,819 on sale.
4 Depreciation @15% have been calculated as per IT Act.

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