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Basu Agarwal II   12 May 2017

Proprietor balance sheet

Hey All,

1. I want to know that whether the personal assets (like Car,Gold,Land,House) of a propritor of a business are also shown in his balance sheet.

2. I am Prepareing a B/S of an individual businessman who has no registration under any taxes except PAN card. I want to file his return under ITR-4.

3. If i propritor has a business for last 25 years now he want to prepare his b/s from this year, so how can he introduce capital, is he include his own house and other personal asstes in that B/s.

Please reply by giving ans. in 1, 2, 3, manner.

Waiting for valuable Replies



 7 Replies

Raman Verma

Raman Verma (trainee)     12 May 2017

1. Personal assests which are using in business also for business puprpose can be shown in balance sheet of the business.

2. ITR-4 for those who carries business and income of business... where ITR-4S is for those who calculate their income on presumptive basis.

3. no personal assets in business allow. he can use building of his business place as asset..!
hope it will help u
3 Like
rama krishnan

rama krishnan   12 May 2017

you have to prepare two balance sheets one for business (here you have to show only assets and liabilities in respect of business) and the 2nd b/s for the individual which includes everything like his personal assets such jewelry self occupied residence etc. correct me if I am wrong
Nikunj Shiyani

Nikunj Shiyani (Executive)     12 May 2017

1. It is the different the personal balance sheet and the business balance sheet.

2. Home and the car shall be shown in business balance sheet only if practically being used in the business purpose apart from personal purpose then take % vise cost of car or depreciation.

3. start from today,, balance available in cash and bank account shall be take in to account with capital account.

4. make entry from 1/4/2017 in the account with available bill for account of sales and purchase, also claim expenses,

5 if you claim expenses for period of 1/4/2017 to 12/05/2017 then cash paid shall be treated first capital and after take in to account payment. i am sure you know the basic axxounting principle ans its application.

Basu Agarwal II

Basu Agarwal II   12 May 2017

But as per accounting concept individual and business are not separate entity, they are same so how can i prepare separate for each one

rama krishnan

rama krishnan   15 May 2017

but for the purpose of income tax act you are required to prepare two balance sheets

bhawna (Student CA Final )     26 October 2019

how to prepare consolidated balance sheet of two business of single proprietor whether two tax audit report is to be prepared for both the business??

Prachi Bansal

Prachi Bansal   30 March 2021

What will be the treatment of owner's assets in the balance sheet?

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