Pending balance sheet etc

A/c entries 1002 views 6 replies
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Accountant
189 Points Joined February 2011

Dear All

I need valuable help,

I.T.Advisor give us a pending a/c work of financial year 2007-2008, please help me how to do this work , as below

No account books in manual or Tally (need to start accounting from begining)

party have purchase bill & some expenses bill, bank statements. no cash book.

I.T. advisor (Advocate) give me three figure's as below

Financial Year 07-08

Gross Received 5,90,000.00

Expenses4,80,000.00

Net Profit1,10,000.00

Gross Received is G.P. ? or any other thing

the I.T.Advisor and VAT Consultant want from me prepare Balance Sheet , Trading A/c. & Profit & Loss A/c. with complete entry in account books.

please help me how to understand above figure and doing accounting.

Thanks In Advance

Arshad

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On 16 May 2011 at 12:00 Report
Replies (6)
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CA Final
66 Points Joined December 2008

Gross received is not gross profit(g.p) it is the equivalent of Sales in a trading account.
 the format is
 

To  Direct Expenses                                         By Sales
                                                           (Gross Received)

To Gross Profit c/d
________________________________________________________________
                                                                        By Gross Profit b/d

To Indirect expenses     

To Net Profit

 

 

 


 

1 Reply
On 16 May 2011 at 12:43
Guest

Follow the following steps:

1. You must be having Balance sheet for FY 06-07. Take the opening  bal in tally for FY 07-08.

2. Update all the Bank entries.

3. Clear the suspense A/c for that you need to discuss the unknown receipts & payments with your client.

4. Check & download 26AS from incometaxindiaefiling.gov.in site.

5. Check whether any TDS is deducted ... Also make sure that income shown in 26AS is booked in tally.

6.  Book all the purchase bills .

7. Understand the business  that your client is doing & the margin that he is earning. Accordingly arrive at the sales figures & closing stock.

8. Pass all the entries for Cash Expenses & then , finally decide on the Cash balance.

In case if there is any short fall in cash, show introduction of Capital. In other case, if there is excess of cash, show drawings .

 

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On 16 May 2011 at 14:27
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Accountant
189 Points Joined February 2011

Thanks Ankita Ji & Yogini Ji for reply & guidance.

Yogini Ji if i dont have  Balance sheet for FY 06-07 than what can i do for opening balances.

Waiting for reply

Arshad

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On 16 May 2011 at 15:22
Guest

Do you have the return filed for last financial year...........?

In ITR you are required to give Balance sheet. From that at least you can have the  amount of Capital , cash & debtors.

From the bank statement you will get the opening balance. If nothing is available, for FY 06-07 you can take Bank on asset side & capital on lib side as your opening balance sheet.

Skip the first step & proceed further. 

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On 16 May 2011 at 16:17
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Accountant
189 Points Joined February 2011

Thanks to you Yogini ji for reply and guidance.

 

Arshad

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On 16 May 2011 at 19:19
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Tax Consultant
76 Points Joined July 2009

as per incometax act if ur netprofit is more than 5% of ur gross receipts u need not maintain books of accounts 

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On 17 May 2011 at 05:51


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