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Professional books of a/cs

Others 755 views 3 replies

HELLO FRIENDS, CAN ANYBODY TELL ME MY CLIENT IS RUNNING HIS PRIVATE HOSPITALTHEY DONT SELL ANY MEDICINES BUT THEY PURCHASE THE MEDICINES AND CONSUMED IN THE TREATMENT OF PATIENTS.

CAN I SHOW ONLY OPG. STOCK +PURCHASES -CLG. STOCK IN THE INCOME AND EXPENDITURE A/C

ONLY STOCK CONSUMED AND SHOW THE CLG. STOCK IN BALANCE SHEET.

IS THIS TREATMENT CORRECT.

CAN I ALSO MAINTAIN THE A/C ON CASH BASIS OR MERCHANTILE BASIS BEACUSE THERE ARE SOME AMOUNT DUES TO THE CREDITORS AT THE YEAR END.

CAN I MAINTAIN THE BOOKS ON THE MERCHANTILE BASIS.

PLS. HELP ME.

THANKS.

Replies (3)

Hi,

For Professionals,books are maintained in Cash basis. Since this is a Hospital, mercantile basis should be used for maintaining books of accounts.

As for medicines, a stock register should be maintained wherein you can show opening stock, , purchases, consumptions and closing stock.

 

Regards

Prateek

THANKS, BUT MY TREATMENT IS CORRECT OR NOT?

YES, I WILL MAINTAIN STOCK REGISTER FROM THE NEXT YEAR.

PLS. HELP ME.

Yes sir, your treatment is correct.

Also, if your client is liable for tax audit, then quantitative figures of stock of medicines has to be shown in Form 3CD.


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