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Expenses of tailoring business

santosh patil (Finance Professional) (275 Points)

05 December 2013

Dear Team,

One of my client having tailoring business.Which are the expenses I have to show in profit and loss account?

Which are the Assets I can show in balance sheet?

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12 Replies

Fenil Shah (Audit & Tax Executive) (402 Points)
Replied 05 December 2013

Any expense that your client is incurring show in P&L & the machine he is owning should be capitalised.

2 Like

sandeep (article) (31 Points)
Replied 05 December 2013

Expenses Staff salary Staff welfare Water and electricity expenses Rent Repairs and maintenance of machines office eyc. Books and periodicals Depreciation Staff food and beverages Travelling and conveyance expenses Assets Vehicle used for budiness purpose Building Machines Cash in hand Cash at bank Stock Debtors

1 Like

Mihir (Wealth Manager) (5293 Points)
Replied 05 December 2013

Expenses incurred to procure raw materials, for electricity, telephone, spare parts, salary, rent, conveyance, legal fees if any, accounting fees, licence fees if any, bank charges, advertising exp, depreciation on machines etc.

1 Like

Rahul Jain (CA in Servce) (70 Points)
Replied 05 December 2013

Cost of fabric, thread, button, trims, rent, electricity, telephone, employees expences, pilferage, interest, depreciation of machine n other assets, advertisement, local body taxes n other legal fees, stationary, housekeeping expences ets Assets: fixed asset can be building, swing machine, furniture n fixtures , vehical, computer and current asset can be inventories in the form of fabric, thread, button, niddle, trims, cash in hand and bank, debtors, deposit, other advances

1 Like

manoj (student) (5205 Points)
Replied 05 December 2013

TO PROFESSIONAL CHARGES
TO DEPRECIATION
TO TEA & REFRESHMENT
TO MISC. EXPENSES
TO TRAVELING EXP
TO TELEPHONE EXPENSES
TO DIWALI EXPENSES
TO STATIONARY
TO DELIVERY CHARGES
TO FUEL EXPENSES
TO ELECTRICITY & MAINTAINANCE

1 Like

manikandan.J (Accounts Manager) (363 Points)
Replied 05 December 2013

No need show all those things it is small or medium size businessess mere declare as a profit from business or profession.

1 Like

manikandan.J (Accounts Manager) (363 Points)
Replied 05 December 2013

This kind of business everything maintained cash basis only. Not in accrual basis.

1 Like

Manoj Pandit (student) (139 Points)
Replied 06 December 2013

I feel it's better to show business related expenses for which he's holding records, if it's for tax purpose and he's not maintaining any accounts..but if it's to know result of his business for a particular period then, better take into account all the expenses he paid out of his cash drawer, and bank account of his business in that period..