Hi to all
I ( a individual) having a professional income , from this income only i meet my professional expesnes plus my household expenses. My question is that how should i prepare my books of accounts----whether collective or two seperate for income tax purpose. If anyone has performa of the like boksof acount...plz send me at das.ramkrishna97 @ rediffmail.com
Thanks
Hi...
There shold be proper bifurcation between Personal & official expenditure....Personal expenses are not allowed under income tax Act..
dear shekhar
I know that but my probelm is how to prepare books of accounst.......
plz
U can prepare Reciepts & Payments a/c...One capital a/c n show if u have introduced any capital, u can also transfer current year profit if any to build ur capital....U can do it either in Tally or Prepare it manually in an Excel sheet..
This can be done if u have information of all reciepts n payment....
You should show all the personal expenditure as your drawings.
Drawings a/c can be made under the Head Capital in tally and you can accordingly pass journal entries.
All official expenditure should be shown in Income and Expenditure account and personal account under Drawings (Capital a/c)
OK THANKS .THIS REPLY I WAS LOOKING FOR......
CAclubindia
