Opening balance

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This discussion addresses how small businesses should determine their opening balance for capital and cash on hand as of April 1st, 2018. The advice given is that this balance should be based on actual figures and supported by the books of accounts from the previous financial year. It suggests showing between £2-3 lakh for capital and £18,000 for cash on hand in the balance sheet for IT Act purposes.

Kollipara Sundaraiah

Kollipara Sundaraiah (Querist)
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18 May 2020 Sir,
Assess small businesses person.
Sales turnover finicial year : 2018-2019 rs.69 lacs
Sales turnover finicial year:2019-2020.
Assess I.t. returns filed two years for the purposes of bank loan.
Question:
Assess How much amount capital account and cash on hand opening balance introduced as on 01.04.2018
Shown in balance sheet under I.t.act