Proprietor business -profit appropriation/drawings

Dear Jyothis

Amount of profit utilized by assessee for his personal use, should not be shown in column : Transfer to reserve

all the personal expenses incurred by assessee during the year should be transferred to capital account and closing balance of such capital account should be shown in balance sheet part of return.

there is no option in return to show drawings

there is no option in return to show drawings

Say if Capital opening is Rs.50,000/-.

Net profit is Rs.2,90,000/- & Proprietor used Rs.290,000 for his personal use.

Where do i show this drawings in ITR 4.

Can i show Rs.240,000 -ve as capital account,Since i have to show Net profit of Rs.290,000 as Reserves & surplus in BS.

If it is wrong,,,Please comment the right method with following figures in P & L and BS.

NP - Rs.290,000 & Capital Account-Rs.50,000.

are you going to submit ITR-4 .....ok

and all the columns of Profit and loss and Balance shall be filled.

in balance sheet, you will find the first block related to capital "Propritor's fund'

closing balance of you capital account i.e. 50,000/- should be mentioned in coloum "Proprietor' s capital"

otherwise how will match your balance sheet

Finally ITR Was finalised as follows.

Net profit computed : Rs.290,000/- and it is not tranfered to reserves/appropriation in P&L A/c and Balance sheet.

& Assets side's total was Rs.75,000.

Same was shown as Proprietor Fund.

Please mention is there any issue in following :

1st one needs to be filed in P&L sheet on ITR which is left blank.

2nd was prefiled as Rs.290,000 : However no such amount is shown by me in ITR.

Congratulation .......Your ITR is going to complete

1. Transferred to reserves and surplus
      NIL (in profit and loss account sheet)

2. Balance carried to balance sheet in proprietor’s account (50 – 51)
    if there is no current year loss or carried forward loss then
     Line 45, 48, 50 and 52 (50-51) : Same figures should be filled (i.e.  profit)

3.  1st one needs to be filed in P&L sheet on ITR which is left blank.
      you have filled data in Balance Sheet, means books of account is being maintained.
      so profit and loss sheet should be filled such as gross receipt and all expenses incurred for the year