I'm filling ITR4 again in response to IT notice. I need urgent guidance in filling 'Balance Sheet' section. My only income is 'sale of services'.
To explain my situation, I start from P&L section in ITR4.In this P&L section, the "Balance carried to balance sheet in proprietor's account" is 7 lacs(sale of services is 8 lacs and total professional expenditures amount to 1 lac).
My 'bank balance' is 4 lacs and 'Cash in hand' is 0.5 lacs.
I have incurred household expenses of 2.5 lacs in the financial year and I want t account this. If I do not account this, the credit and debit will not match in BS. This is my personal expenditure like school fee of children, ration etc. I do not have separate bank account for consulting income purpose.
Please tell if the below are correct entries as per ITR4 or else, please list from your side:
Proprietor's capitol(Sourcses of Funds - 1a) - 7 lacs(I have taken from P & L balance)
Cash-in-hand(Application of Funds - 3iiiA) - 0.5 lacs
Bank Balance(Application of Funds - 3iiiB) - 4 lacs
Miscellaneous expenditure not written off or adjusted(Application of Funds - 4a) - 2.5 lacs (using this field for my household expenses).
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Also, please tell me what is the field "Profit and Loss account/Accumulated Balance" field meant for and if needs to be filled in for my case.
I'm running out of time to reply to the notice.
CAclubindia
