Depreciation adjusted after finalization of accounts..?

Friend,

Pass the following JV

Capital A/c  Dr   20,000

         To Asset A/c   20,000

hold on hattrick. how can you give such a suggestion. Vinod can you please inform me in detail about the nature of your business and further while filing the return if you have increased the depreciation amount you must have reduced your profit. So prima facie you can directly adjust the last year profit, but still i wont recommend you the same till you clearly put in your problem.

What HATTRICK said is correct. Since it is an Propreitor concern, the balance in P & L account will be carried forward to Capital account. Hence the entry will be

Capital account Dr. 20000

 to Asset a/c 20000

Well this is what my CA told me to do:

1. I do not pass any entry in my books of account. And continue with the same asset value that I have before the depreciation was adjusted.

2. Current year in ITR-4, he changed the depreciation allowed by recalculating the depreciation after adjustments.

He told me to continue with my books of account without any adjustements.

there may be difference in the profit for income tax purpose and the profit as per the P&L a/c. the difference in the depreciation in the books and the income tax may become. there is no need for passing any journal entry for the difference in the depreciation in the books and the income tax.