01 April 2020
Kindly help me by way of answering the following:- 1) Received PPF maturity worth Rs.10830.31 (both of principal and interest). How to show the same in balance sheet? 2) A fully depreciated car sold worth Rs.2640/- (C.P. was 48690/-). How to show the amount received in balance sheet? 3) Received income tax refund worth Rs.3880/- as principal and 110/- as interest. Interest is taxable. How to show the amount received Rs.3880/- (principal of IT refund) in balance sheet? Regards, T.K.ROY
01 April 2020
1. Reduce the principal amount of PPF received from the Investment in PPF reflecting in the balance sheet and the interest amount to be charged to Income & Expenditure account. 2. Remove the Car from the balance sheet because it is sold, and show loss on sale of Car of Rs. 46,320 in your Income & Expenditure account 3. Remove the Tax Refundable amount outstanding in your balance sheet and the differential interest to be charged to Income & Expenditure Account.
02 April 2020
THANK YOU FOR YOUR REPLY.THERE IS A RE-QUESTION: I SOLD A FULLY DEPRECIATED CAR IN VERY LOW PRICE. CAN I SHOW THE AMOUNT RECEIVED OUT OF SELLING THE SAME IN INVESTMENT,LOAN AND ADVANCE IN ASSESTS SIDE OF THE BALANCE SHEET? THE AMOUNT SHOULD NOT BE DEDUCTED FROM DRAWING.
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