Showing of salary recieved in balnce sheet

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272 Points Joined May 2017
I have business income and i also have salary income, in which column of balance sheet salary income should be shown? plz guide
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On 29 December 2024 at 09:04 Report
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Master in Accounts & high court Advocate
9605 Points Joined December 2011

Salary income should not be shown in the Balance Sheet. Instead, it should be reported in the Profit & Loss Account (or Income Statement).

 Balance Sheet The Balance Sheet presents the financial position of a business at a specific point in time, typically including:

1. Assets

2. Liabilities

3. Equity (or Capital) Profit & Loss Account The Profit & Loss Account, on the other hand, presents the financial performance of a business over a specific period, typically including:

1. Revenues (or Incomes)

2. Expenses

 3. Profit or Loss Reporting Salary Income As salary income is a personal income, it should be reported in the Profit & Loss Account as:

1. "Other Income" or "Non-Business Income"

2. "Salary Income" (if you want to disclose it separately) Example Suppose your business has:

1. Business Income: ₹1,000,000

 2. Salary Income: ₹500,000 In your Profit & Loss Account, you would report:

1. Business Income: ₹1,000,000 

2. Other Income: ₹500,000 (or Salary Income: ₹500,000) Remember to consult with a chartered accountant or tax professional to ensure accurate reporting and compliance with accounting standards and tax laws.

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On 29 December 2024 at 09:30

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