Itr4 balance sheet

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Sunder

Business

165 Points Posted on 12 August 2013

Here are some questions regarding Part A - BS of ITR4 for a Proprietory

business:

- Does 'Proprietor's Capital' pertain to only addition of funds made in the current year?
- Does the section 'Loan Funds' pertain to only loans taken during current year? What about unpaid past loans on which intest is being paid?
- Do bank deposits come under 'Long Term Investments'?
- Where does total amount of unpaid loans go? What about interest on these loans?
- Where does total profit/loss from business go?
- Should the 'Sources of Funds' always balance with 'Application of Funds'?

Replies (2)

CA CS Roshan Begrajka

Chartered Accountants

267 Points Posted on 12 August 2013

1) Total Properitor's capital as on 31.03.13 which are shown in balance sheet i.e. capital-Drawings

2) Loan fund contains the total loan outstanding as on balance sheet date i.e. 31.03.13

3) Bank deposit depends on nature; if maturity after 1 year then long term otherwise short term Investments

4) Total amount of loan taken shown on loan fund section and Interest thereon shown in current liabilities.

5) balance of Profit & loss A/c shown under any other reserve, but if debit balance of P&l then shown in application of fund side which is given in 4(C)

6) yes source of fund is always equal with application of fund