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'?
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Itr4 balance sheet
Replies (2)
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
fully agree with roshan
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