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Regarding home loan

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Yasir

article assistant

501 Points Posted on 15 July 2020

i have a business of garment job work
my annual turnover is 40 lacs.
i have taken a loan amounting to Rs. 17 lacs for purchase of a residential flat .
my question is that should i show this flat in my balance sheet for the FY 2019-20

Replies (5)

Quick Summary

A business owner with a garment job work business and an annual turnover of 40 lacs is seeking advice on whether to include a residential flat, purchased with a Rs. 17 lacs loan, on their business balance sheet for FY 2019-20. The consensus is that the flat should be shown on a personal balance sheet, not the business one, as it affects net worth. However, clarification is sought regarding EMI payments made through the business account.

RAJA P M

"Do the Right Thing...!!!"

128157 Points Posted on 15 July 2020

No need show in the business account...

SURAJ SHARMA

Junior accountant

135 Points Posted on 15 July 2020

Yes you show in the balance sheet that effect your total net worth.

V. NAVEEN KUMAR SICASA

193 Points Posted on 15 July 2020

In my view:
In the case of Proprietorship :individual can have two balance sheets. One is business balance sheet and another is personal balance sheet. Residential plats to be shown in personal balance sheet.