Balance Sheet

For the first balance sheet of a taxpayer, is there any limit for opening of Capital Account balance.

Also how to justify its value?

Replies (2)
Quick Summary
This discussion addresses the opening balance for a taxpayer's first balance sheet, specifically concerning the Capital Account. It clarifies that the Capital Account balance is a residual figure, calculated as total assets minus all liabilities and provisions. The conversation also touches upon how to justify the value of this opening balance.

Capital = total assets- (Long term and short term liabilities + current liabilities and provisions)
Capital Account balance would be a residuary figure (Assets - Liabilities)

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