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Profit and loss statement income head

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Shivraj Sahu

2 Points Posted on 06 February 2021

please suggest if a getting the salary is show his direct income in proprietorship firm profit and loss statement

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Quick Summary

This discussion clarifies how to present salary within a proprietorship firm's profit and loss statement. It suggests that salary should be treated as direct income. The proprietor's salary is to be recorded in their Capital Account on the balance sheet and reported under 'income from salary' in the Income Tax Return (ITR).