Accounting for Site Purchase: Cash Balance & IT Act

Accounting question

Kollipara Sundaraiah

B.com

2404 Points Posted on 28 December 2020

A business person purchases of site value Rs:22 lacs.but cash balance Rs:15 lacs available in books as on purchases of site date.a person below mentioned options is correct methods cash balance Rs:7lacs adjustment allowed in i.t.act.
1.cash loan received from difference assess (personsRs:20,000*35members)
2.cash sales increase as on site purchases date.
3.cash gifts received from realities.
question:
a person above mentioned correct options cash balance increasei n allowed in i.t.act

Replies (2)

Quick Summary

This discussion tackles an accounting query regarding a site purchase where available cash falls short of the purchase price. The user seeks clarification on how the Indian Income Tax Act permits adjustments to the cash balance. Specifically, they are asking which of the provided options, such as cash loans from associates or increased cash sales on the purchase date, are valid methods for adjusting the cash balance under the IT Act.