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Itr5 error
if last year itr5 is filled with wrong closing stock as stock in balance sheet entered is 158000 and in p&l is 85000.then how to do audit this year with opening stock of 158000 or 85000.or not to do audit.and no audit was done last year.
Replies (22)
Quick Summary
If there is no audit done previous year then there is no required to audit this year if conditions are fulfilled
in this case which one value is correct?
in this case which one value is correct?
158000 is correct value.no audit is done last year.but audit is applicable last year as well as this year.but no audit is done last year.
In case audit is applicable then audit should be done this year and the error in closing stock should be valued as prior period adjustment you have to adjust 73000 rupees this year. 158000 rupees should be shown as opening stock in trading account
There is a lapse in last year as you didn't do audit. For current year, certainly audited figures will be brought forward as opening balances.
In itr5 is there any column for prior period items and of yes plz tell that point.thanks in advance
In audited accounts, it will be apparent of Prior period items. However inventory has direct impact on Profit figure. So it's a worry for last year.
I think you should put the value in quantitative details where excess/shortage value of stock are required
But how to resolve this issue for this year as it was a mistake by another CA.and if it is shown in prior period item then it will impact current year profit as well.and client is ready to bear the increased tax liability.any other issue arise for current auditor due to this
Let your CA resolve it.
Sourav .can you give me answer
Three solutions
1 you can mention such item in stock excess/shortage column in itr return
2 you can rectify the previous year financial statements and on this basis prepare the financial statements of this financial year
3 or mention it as prior period item in balance sheet and p&l
1 you can mention such item in stock excess/shortage column in itr return
2 you can rectify the previous year financial statements and on this basis prepare the financial statements of this financial year
3 or mention it as prior period item in balance sheet and p&l
For 1 point. in firm return there is no such shortage or excess column given
2 how to rectify last year balance sheet as no revision is possuble for itr5
6and if we mention it as prior period item.then profit got increased by 73000
2 how to rectify last year balance sheet as no revision is possuble for itr5
6and if we mention it as prior period item.then profit got increased by 73000
If profit got increased by 73000 rupees then you have to adjust that amount by expenses or any drawings from capital or such amount should be broken into parts and charged as indirect expenses in p&l
Thank u sourav and if we dont do the audit for it as we are not opting for 44ad so if profit are less than 8/ than audit not applicable.and turnover is not above 1 cr.so audit not applicable
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