Balance sheet of business and personal
This query is : Resolved
05 November 2012
Dear Sir/Madam,
Plz tell me that how to disclose the proprietor business Assets& liabilties and personal property pl z create a dump data for that purpose and also treatment of following:
1)Treatment of Deprecation for the purpose of income tax.assets use for the purpose of personal & Business.
2)Treatment of LIc preimum.
3)Bank Account used business as well as personal.treatment of interest for the same.
4) Treatment of Cash in hand.
Please look this Matter & give your answer for the same Query
Thanks
Kamal Goyal
Plz tell me that how to disclose the proprietor business Assets& liabilties and personal property pl z create a dump data for that purpose and also treatment of following:
1)Treatment of Deprecation for the purpose of income tax.assets use for the purpose of personal & Business.
2)Treatment of LIc preimum.
3)Bank Account used business as well as personal.treatment of interest for the same.
4) Treatment of Cash in hand.
Please look this Matter & give your answer for the same Query
Thanks
Kamal Goyal
06 November 2012
for the purpose of Drawing balance sheet of proprietor and Business
please draw the business balance sheet in the normal manner as it is drawn
and then draw the proprietor considering the personal assets which are not considered for business
treatment of the items are as follows:-
1. the Depreciation claimed by the assessee would be part of Business B/s because as per income tax Depreciation cannot be claimed for the assets used for personal use.
2. LIC Premium if it is paid from withdrawal from business it can be shown as Investment in asset side or can be shown as deduction from capital in the Business Balance sheet.
3 the Bank a/c if it is common for business as well as personal use
the amount which is used for personal use should be shown as deduction from capital and the amount which is deposited from personal should be added to capital a/c
as introduction of capitals
if the account is personal and the business payments and receipts are done through that account the same should be adjusted through capital a/c
4.business cash would be shown in the business balance sheet after that in the personal B/s cash in hand (personal) should be shown in this balance sheet
please draw the business balance sheet in the normal manner as it is drawn
and then draw the proprietor considering the personal assets which are not considered for business
treatment of the items are as follows:-
1. the Depreciation claimed by the assessee would be part of Business B/s because as per income tax Depreciation cannot be claimed for the assets used for personal use.
2. LIC Premium if it is paid from withdrawal from business it can be shown as Investment in asset side or can be shown as deduction from capital in the Business Balance sheet.
3 the Bank a/c if it is common for business as well as personal use
the amount which is used for personal use should be shown as deduction from capital and the amount which is deposited from personal should be added to capital a/c
as introduction of capitals
if the account is personal and the business payments and receipts are done through that account the same should be adjusted through capital a/c
4.business cash would be shown in the business balance sheet after that in the personal B/s cash in hand (personal) should be shown in this balance sheet
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07 November 2012
Thanks for above reply further i want to know that personal withdrawl and capital....how to disclose in personal balance sheet pleaseprovide me the dummy balance sheet of personal balance sheet that linked with business capital accounts
07 November 2012
business capital would be shown in asset side of the personal balance sheet as investment in business
and personal capital would be shown as normal capital a/c in the balance sheet
i would provide you the dummy b/s soon
and personal capital would be shown as normal capital a/c in the balance sheet
i would provide you the dummy b/s soon
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07 November 2012
thanks..........
10 November 2012
balance sheet (business)
Liabilities Amount Assets Amount
Capital 1100000 Fixed asset 150000
creditor 100000 loans & advance 80000
debtors 150000
closing stock 320000
cash & Bank 500000
Balance Sheet (Personal)
capital 1760000 Land 360000
investment in
business 1100000
Life Insurance 100000
cash & bank 200000
Liabilities Amount Assets Amount
Capital 1100000 Fixed asset 150000
creditor 100000 loans & advance 80000
debtors 150000
closing stock 320000
cash & Bank 500000
Balance Sheet (Personal)
capital 1760000 Land 360000
investment in
business 1100000
Life Insurance 100000
cash & bank 200000
31 March 2021
so you suggesting to have two tally accounts - one for professional and one for personal right?
i am a professional and keep two tally accounts but in this case how shall i treat income tax accounting in both the tally accounts since there would be one income tax amount but TDS needs to be adjusted of both personal and professional income.
i am a professional and keep two tally accounts but in this case how shall i treat income tax accounting in both the tally accounts since there would be one income tax amount but TDS needs to be adjusted of both personal and professional income.
19 June 2021
I am not suggesting any thing i have just replied to the query which has been put
its a fact in case of proprietors that the personal assets do not form part of business balance sheets thus in that case treatment of the same is explained in the above
i neither suggested nor written anywhere in the above replies that have two accounts
further your query
for treatment of income tax is that it needs to be deducted from Capital which may be deducted from any accounts i.e personal or professional
since the same is personal expenses you can either deduct from Professional Balance Sheet capital in case the payment or TDS is from Professional Source
or from Personal Balance Sheet if paid or TDS from Personal Source
its a fact in case of proprietors that the personal assets do not form part of business balance sheets thus in that case treatment of the same is explained in the above
i neither suggested nor written anywhere in the above replies that have two accounts
further your query
for treatment of income tax is that it needs to be deducted from Capital which may be deducted from any accounts i.e personal or professional
since the same is personal expenses you can either deduct from Professional Balance Sheet capital in case the payment or TDS is from Professional Source
or from Personal Balance Sheet if paid or TDS from Personal Source
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