my father is a govt. salaried person, now he wants to make F.S. (balance sheet & Capital A/c) i have following queries,
1. whether can i do so? 2. in case of Fixed Assets in balance sheet, can i charged depreciation on to it, or i can not? if yes where depreciation is to be charged, In capital A/c?
14 October 2016
Yes you can make the financial statement You can charge depreciation on the fixed assets. You should debit profit and loss account and credit the asset account. At the year end you can reduce it along with other expenses from the capital.
14 October 2016
01. Yes, you can prepare F.S. (Financial Statements) 02. Since you have specified F.S.to mean Balance Sheet & Capital A/c, no NEED to confuse yourself with depreciation. Earning Govt salary is NOT considered as the business of trade of your father and hence the question of preparation of Profit & Loss a/c does not arise, so also the charging the depreciation. What you can do is prepare yearwise Receipt & Payment account...(may be in columnar form) This will make your job of preparing F.S.; logical as well as easy AND it will also serve the purpose for which your father wants to prepare F.S.
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