Balance sheet and P & L of ITR-4 of a sole proprietor

Is this the first time, are you filing ITR4? If no, you can refer previous year BS & P&L for many of the opening balances.

1. Gross block of FA is the total cost of fixed asssets (before depreciation) + new additions (at cost) during the year
2. If assets are not related to or not used for business, then such assets cannot be mentioned and no depreciation can be claimed on such assets
3. CWIP refers to some pending activity like under construction of property etc.
4. Credit card liabilities under sundry creditors is fine
5. P&L accumulated balance is the last year's profit/loss balance (refer last year's statement if you have, or if first time, leave this)
6. This is same as S/n 5
7. If there no previous year balance of profit/loss, then amount carried forward to the BS is the profit/loss after tax. This amount has to be mentioned under capital account in the BS (after making adjustment if any)

Originally posted by : Poornima Madhava
	Is this the first time, are you filing ITR4? If no, you can refer previous year BS & P&L for many of the opening balances. Gross block of FA is the total cost of fixed asssets (before depreciation) + new additions (at cost) during the year If assets are not related to or not used for business, then such assets cannot be mentioned and no depreciation can be claimed on such assets CWIP refers to some pending activity like under construction of property etc. Credit card liabilities under sundry creditors is fine P&L accumulated balance is the last year's profit/loss balance (refer last year's statement if you have, or if first time, leave this) This is same as S/n 5 If there no previous year balance of profit/loss, then amount carried forward to the BS is the profit/loss after tax. This amount has to be mentioned under capital account in the BS (after making adjustment if any)

Thank you Poornima, for your helpful answers!

Although I have been filing ITR-4 for a few years, this is the first time I'm filing a detailed BS and P&L using the financial statements done in WaveApps online accounting software.

I'm trying to understand the concepts clearly.

By "last year's profit/loss balance", do you mean the last year's profit after tax? Is that what "balance brought forward from previous year" mean?
In WaveApps, it shows all the "Previous Years Earnings" under the Equity section of BS. Is it the P&L accumulated balance?

Regarding the adjustments, do you mean adjustments like owner drawings before taking it as "Proprietor's capital"?

Is there any place in the ITR-4 BS where we can input the owner drawings?

1. Last year's profit/loss balance is available from previous BS. This is the profit balance after tax, transfer to reserve etc. The same can be taken from the last year's BS.
2. I don't know about WaveApps but the surplus/deficit of P&L is shown under capital group.
3. Yes, adjustment means like drawings etc.
4. I think in ITR4, no such provision and the adjusted amount has to be shown under Proprietor's capital.

Thank you very much, Poornima! You've made my day!

HI GUD MRNG .,

                           ANY BODY CAN HELP ME MY CUSTOMER HAVING MANY BUSINESS ALL CONCERN SOLO PROPRIETOR HOW CAN I PREPARE P& L , B& S PLS HELP TO US 

Hi,

Where to show drawings in Balance Sheet? Should that be deducted from Profit from P&L transferred to Proprietors Capital? Kindly let me know. (Filing for professional, ITR 4)