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What should be included in balance sheet of individual?

Monika (Student) (50 Points)

30 November 2017

I want to prepare the balance sheet for an individual who is a contract employee and TDS is deducted u/s 194J, this is for AY 2014-15 and his net profit exceeded 120000/- which made him to fill balnce sheet and P&L in ITR. What are the items that needs to be included in balance sheet and how to ascertain them. please share your experience and help me out.

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64 Replies

Divakar (Student CA Final ) (11857 Points)
Replied 30 November 2017

Whteher u want to file regular return or presumptive taxation... Go for presumptive taxation... As in there no compliance and simple return... In balance sheet... Proprietor capital, loans, creditor... Fixed assets, investment, current assets... Thats all... Profit and loss ac include all income and expenses

1 Like

Neha Mittal (240 Points)
Replied 30 November 2017

I guess @ divakar in ay there was no option for presumptive taxation in ay 2014-15 for professionals. Rest @ monika you can show the income intt income related expenses. bs will include the capital, loans current liab investment current assets like cash and bank balance and other short term loans & advances.

3 Like

Monika (Student) (50 Points)
Replied 30 November 2017

yes, there is no concept of presumptive for proffesional in the AY 2014-15, but @ Neha mittal how to ascertain the capital amount??

1 Like

Divakar (Student CA Final ) (11857 Points)
Replied 30 November 2017

@ Neha...u r right presumptive taxation for professional came in year 2016 by arun jaitley sir... I gave answer for current year.. Didn't saw she is asking for fy 13-14, bdw how could he file return now... Bcz belated return due date lapses already

1 Like

Neha Mittal (240 Points)
Replied 30 November 2017

you won't need to ascertain just mention some amount of capital through cash.

1 Like

Divakar (Student CA Final ) (11857 Points)
Replied 30 November 2017

Capital account preaperd by cash & Bank ac... Record bank entries... And consider all inveuand drwaings

Neha Mittal (240 Points)
Replied 30 November 2017

that's the point @ divakar. @ monika is there assessment notice of the client?

Monika (Student) (50 Points)
Replied 30 November 2017

his return is invalidated, as he didn't responed to defective notice; We can file the return with the assessing officer if he accepts for filing the delayed return; we have to do it manually

Divakar (Student CA Final ) (11857 Points)
Replied 30 November 2017

Then prepare cash & bank account and determine capital account

1 Like

Neha Mittal (240 Points)
Replied 30 November 2017

@ Monika okie no prob then introduce capital through cash account. ask if any more queries 😊

1 Like

RAJA P M ("Do the Right Thing...!!!") (127076 Points)
Replied 30 November 2017

But, I am understand the above said replies...
The Querist ask Preparing BS and PandL to a individual... But, Query is not Solve...

Also I'm asking the same question as above....

How to prepare BS and PandL to a individual account...?

Neha Mittal (240 Points)
Replied 30 November 2017

I think @ raja you haven't read my replies I have mentioned in one of my reply

Divakar (Student CA Final ) (11857 Points)
Replied 30 November 2017

@ raja sir.. Ask from monika whether her query is resolved or not... Capital account should be prepared through cash & Bank A/C.... Proprietors capital then loans & liability then current liability... Fixed assets, investment, and current assets

Divakar (Student CA Final ) (11857 Points)
Replied 30 November 2017

@ Neha... In balance sheet u have to reported ur closing capital not opening capital... And closing capital include all initial investment or further investment and drwaings.... That could be derived only through cash& Bank account combined...