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Balance sheet of salaried individual

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Lila

Job

463 Points Posted on 04 August 2020

Person A is a salaried individual. But due to options trading, he needs to get his accounts audited. Now while preparing his P/ L and B/S,

a) should one only consider the transactions related to option trading?

b) if he has given loans from his salaried income, should those loans be compulsorily shown in his business balance sheet

c) He has personal assets also accumulated over years. Can we just keep them aside or should make part of the balance sheet. This is 1st year, when we need to make this Balance sheet. Please give ur views...

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Quick Summary

This discussion explores the complexities of preparing a balance sheet and P&L for a salaried individual who engages in options trading and requires an audit. Key questions revolve around whether to include only trading transactions, how to account for personal loans given from salaried income, and if personal assets should be incorporated into the business balance sheet. The querent is seeking guidance on these matters for their first year of preparing such statements.