ONE OR MORE FIRM FINANCIAL ACCOUNTS

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If you own multiple shops as a proprietor and employ staff, you need to prepare your financial accounts correctly for your Income Tax Return (ITR) and loan applications. You can combine the financial statements (Profit & Loss and Balance Sheet) for all three shops if they are part of the same business. However, if you maintain separate records for each shop, it's best to prepare individual statements first and then create a consolidated set for your tax return.

suryadipsinh mori

suryadipsinh mori (Querist)

09 May 2023 One person is owned 3 shops (proprietor) and He Appointed sales person for 2 shops and give salary to 2 persons, then for ITR (Loan Purpose) How Should i prepare financial accounts ?

1. Should i prepare profit and loss, balance sheet separately for 3 shops and give 3 shops combined net profit value in itr 4

OR

2. Should i prepare single profit and loss, balance sheet for 3 shops ?

Kindly Answer

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

09 May 2023 You can prepare combined statements if all the 3 shops are used for the proprietorship business.

PARAS CHHAJED

PARAS CHHAJED

(Expert)

09 May 2023 If separate books of amount are maintained for each shop, then better to prepare separate p&L and B/S for each shop and then prepare a consolidated P&L and B/s. The consolidated P&L ad B/s to be used for preparation of return of income.

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