maintaining balance sheet
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
04 December 2009
how will a propeitor maintain his personal and business balance sheet
06 December 2009
1. A proprietor can maintain his balance sheet in merged format : both the assets and liabilities of personal and business can be shown together.
2. Even if you want to maintain personal balance sheet; take-off the personal assets by crediting the assets and debit the capital account of proprietor. Similarly; take-off the personal liabilities by debiting them and crediting the capital account.
3. In case you select the solution number 1 above, if you have not taken certain assets into your records for example a house inherrited from your father; you can include that amount in your capital account which was shown in your father's balance sheet. In this manner you will introduce these assets. Similarly; what liabilities you have incurred personally; you can introduce in the business also.
4. For filing of Income-Tax Return; either you can show only business transactions (firm's balance sheet) or you can merge the both (firm and individual).
5. If you show only business balance sheet in Income-Tax; still your personal income are to be added in the Computation of Income.
CA Rakhecha, Surat
2. Even if you want to maintain personal balance sheet; take-off the personal assets by crediting the assets and debit the capital account of proprietor. Similarly; take-off the personal liabilities by debiting them and crediting the capital account.
3. In case you select the solution number 1 above, if you have not taken certain assets into your records for example a house inherrited from your father; you can include that amount in your capital account which was shown in your father's balance sheet. In this manner you will introduce these assets. Similarly; what liabilities you have incurred personally; you can introduce in the business also.
4. For filing of Income-Tax Return; either you can show only business transactions (firm's balance sheet) or you can merge the both (firm and individual).
5. If you show only business balance sheet in Income-Tax; still your personal income are to be added in the Computation of Income.
CA Rakhecha, Surat
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- House Property Reporting in ITR
- Internship/Academic shown in Salary Pay Slip of a Doctor
- TDS Claim year
- Liable to deduct tds and 44ADA
- Relief u/s Section 89
- TDS Challan Code
- Rent lease agreement
- Refund of 20%pre-deposit paid for stay application
- Nomination of Bank for refund in itr 2
- Section 56(2) of the Income tax Act 1961 , Gift to relative .
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
