Balance sheet for a consultant in itr 4

This query is : Resolved

Sanjay (Querist)
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09 September 2016 Dear Experts,

I have received a notice under section 139(9) from IT dept. It mentions that I have not file BS and P&L although I have given P&L details but not the BS. I am not sure about how to prepare a BS for a consultant who utilizes the earnings from profession towards personal expenses/investments and has no business related asset except a laptop.

I would be grateful if you can clarify the following points (I am not a finance professional):

1. My earnings from consulting has gone into personal expenses/personal investments, an interest free loan to a relative and my personal bank account. How should I account for it in the in the balance sheet? (What amount and where will be reflected in it). As per the P&L, entire PAT falls under "Balance carried to BS in proprietor's account."

2. If the entire amount is to be shown as source of funds in the BS, under which head will it be shown and how can I account for personal expense/investments/loans under "Application of funds" in the BS to balance source and application of funds?

3. Would the value of laptop and depreciation come under fixed assets in BS?

4. Would the tax refund due to me come under "Balance with revenue officials" under loans and advances in Application of Funds in the BS?

5. In P&L, does one need to show the profit for 2014-15 (year prior to the one for which ITR is being filed) in "Balance brought forward from previous year" under Provisions for Tax and Appropriations?

Please help me with your expertise and valuable suggestions so that I can file revised returns correctly.

Thanks

ACA Anurag

ACA Anurag (Expert)
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09 September 2016 Dear Sanjay, We cannot provide each service here as u need to take professional services from us or else form your near by CA's.

Amol S Joglekar

Amol S Joglekar (Expert)
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09 September 2016 you can prepare the list of assetts viz. property, investment, bank balance, gold etc. This will form the asset side of balance sheet. Against that try to search LOAN if any....the balancing figure is shown as CAPITAL..... See if it works for you...else as said by ACA Aurag, dont hesitate to pay for the services of CA to do the same for you.

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