Balance sheet urgent help

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

Replies (2)

First, what is a current account? Are you maintaining two different accounts of the proprietor?

Second, if the Advance Tax and TDS of previous years are still being carried on Balance Sheet then you should transfer the same to his personal balance sheet by debiting Capital Account, all of them.

A single entry can be easily passed in the current accounting year and you need not make any changes in previous years. 

Moreover, when u write off advance tax and tds from capital account, the capital will decrease and corresponding effect will be on the concerned tax asset account already standing in the books and will not affect your bank accounts. Here, you may not bring the refund received in savings accounts in the books of accounts of business.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
17 September 2026
Chartered Accountant

Dass Gupta & Associates

Gurgaon

CA

View Details
Company
12 October 2026
AUDIT , ACCOUNTS AND TAXATION

KDSS

New Delhi

B.Com

View Details
Company
05 October 2026
Senior Accountant

Vision IT Peripherals Pvt Ltd

Mumbai

B.Com

View Details
Company
ARTICLESHIP 16 September 2026
Article Assistant

MANUJ SHARMA AND COMPANY

Noida

CA Inter

View Details
Company
16 September 2026
Internal Audit - Team Lead

Consulting & Beyond

Chennai

CA

View Details
Company
ARTICLESHIP 30 September 2026
CA Article Assistant

CA Suraj Garg & Associates

New Delhi

CA Final

View Details
Company
Featured ARTICLESHIP 06 October 2026
Semi Qualified

AJAY SINGH AND CO LLP

Thane

CA Final

View Details
Company
30 September 2026
Senior Accounts Executive

Codeboard Technology

Chennai

MBA

View Details