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balance sheet preparation for joint bank account holders

Accounting Entries 3006 views 1 replies

Hi,

I have a query about transaction entries while preparing the balance sheet in case of a shared joint account.

Me and my sister share a joint savings account at axis bank(opening balance is 5000, deposited by my sister. i never used this account earlier). We both have pan card and both have been payin ITR.

the primary holder of joint account is my Sister.

In my books of last year, I gave my sister a loan of 50,000rs to her icici salary a/c from my personal salary a/c at icici. This year, to return my money, she transferred 50k from her salary account at icici bank to this joint  account at axis bank, since the money would be accessible to me.

now, while filing ITR, this money in axis bank joint account should be shown in my books or hers?

If she showns the all entries of axis bank in her books, then the loan entry of 50k should remain intact?

What If I show only 50000 in my books where as 5000(opening)+interest in my sisters account?

Replies (1)

THE JOINT BANK ACCOUNT CONTAINS THE PRIMARY A/C HOLDER AND SECONDARY A/C HOLDERS.SO WHILE PREPARING THE BALANCE SHEET OF PRIMARY A/C HOLDER THE OVERALL BANK BALANCE IS TO BE SHOWN IN HIS NAME ONLY.AND WHILE MAKING THE BALANCE SHEET OF SECONDARY A/C HOLDERS BALANCE MUST BE SHOWN AS NIL 


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