Menu
How to take opening balances when accounting for past years is not maintained...???
I m going to do accounting for my client for f.y. 2015-16. he is doing business since last 10 years. but he didn't maintained books of accounts till date. Please guide how can I take opening balances of assets and capital as on 01/04/2015.
Replies (7)
In the query please give clarity like any invoices of FA ia available & whether tax audit is applicable for the client & turnover of the client exceeds 1 crore or not......
Tax audit not applicable, and fixed asset register is not available, client is doctor having own hospital
If the client have the year of purchases of fixed assets then backward calculation can be done....otherwise you have take the help of valuator and get the assets valued...... Take the resale value as the fixed assets value.....
Thank you. Can I use balancing figure between value of asset and value of liability as capital account balance...???
Thank you. Can I use balancing figure between value of asset and value of liability as capital account balance...???
Yes you can...........
But please once confirm with your client how much he wants to maintain as capital and take care about the cash & bank balance in the balance sheet of the client.
Ok. I will take exact bank balances , loan account balances and values of fixed assets and whatever will balancing figure will go to capital account. Thank you sir
Recent Topic
- Can i should STCG and LTCG as business income ?
- Capital contribution in Firm
- Form 3CD – Clause 20(b) | ESI Contribution &
- Capital Gains on Dissolution of Partnership
- GST Payment through DRC-03 by cash against notice
- Schedule EI for ITR1
- INCOME TAX DEPARTMENT: DOUBLE STANDARDS
- ITR-4,under presumptive Taxation
- TDS data mismatch with SFT
- Resale of under construction Residential Flat part
Related Topics
CAclubindia
