Hi,
"A" is managing a propritor firm run by his father who is also a pensioner. "A" does his own accounting work for his firm. A's father being a propritor fiiles his ITR-4. A's father source of Income:
Pension
Bank Interest
Business Transactions
While preparing balancesheet A kept on showing his enteries of Advance Tax and TDs on bussiness under Assets for consecutive 4-5yrs as the returns were not assesesd till the preparation of accounts/balance sheet. Now A wants to write off Advance Tax and TDs on bussiness to the capital account.
Balance sheet is purely linked to current account. No other account is linked to it.
Pls advise :
Can A write off Advance Tax and TDs on bussiness to the capital account at this stage .If , yes does he have to pass entereies in the previous year s balance sheet. OR a single entry can be passed in balance sheet of FY 2014-15.
If capital account is credited then Capital will increase in the business. If capital increase then banks will not tally.
Note : Advance Tax has been filed from Current Account and refund of ITR Assesed is credited to Savings account:
Pls help urgent help
CAclubindia
