Itr5 error

Sourav (Student)     08 January 2021

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?

Jyoti Narang (Kkk)     08 January 2021

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.

Sourav (Student)     08 January 2021

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

Kapadia Pravin   08 January 2021

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.

Jyoti Narang (Kkk)     08 January 2021

In itr5 is there any column for prior period items and of yes plz tell that point.thanks in advance

Kapadia Pravin   08 January 2021

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.

Sourav (Student)     08 January 2021

I think you should put the value in quantitative details where excess/shortage value of stock are required

Jyoti Narang (Kkk)     08 January 2021

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

Kapadia Pravin   08 January 2021

Let your CA resolve it.