Preparing p/l a/c and b/s first time

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MALAY DAS (Querist)
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30 January 2013 dear respected sir
I prepare p/l a/c and b/s first time, hence
I provide foolowing particulars for p/l and b/s please advice me its ok or not
particulars p/l a/c:
total commission income=397434 expenses:
conveyance exp=23855, salay to staff=26400
depriciation on car@15% on Rs=344960=51744
intarest on car loan=23355, priting and stationary=4984,lic premium paid=13957 and
net profit=253139.
and b/s particulars
assets side motor car=344960-51744(dep)=293216 motor bike=55200, house hold goods=32565, current assets=118939,bank balance= 28129cash=42564. liablities side= capital a/c= 297119+253139-210000(ob+surplus-drawings)=340258 car loan a/c=280000-73000+23355(loan-emi+intarest)=230355 total assets/liablities=570613. please advice me its correct or not. thanks......

CA Harish Suwalka

CA Harish Suwalka (Expert)
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30 January 2013 1. Dep. on Motor bike should be provided
2. if you preparing balance sheet for business than household goods are not part of Assets
3.Balance of car loan a/c should be actual as per statement (not calculated by formula)
4. LIC premium is not an expense, it is an investment, and hence to be shown as drawings and deductible from capital
5. howcome no electricty, water, telephone , petrol expenses incurred... impossible
.. otherwise all these , it looks ok... well attempt for first time

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MALAY DAS

MALAY DAS (Querist)
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30 January 2013 dear respected sir
first thank you very to encouraging me. as you said no 1 . the assesee is commission holder agent so can he claim depriciation on motor car and motor bike used for the business? 2 .Its is a personal balance sheet,so its ok or not? 3 .car loan Rs 280000, EMI= 7300*10=73000 and intarest= 23355 please clarify.thanks.... 4 .LIC PREMIUM+ TOTAL DRAWINGS deducted from capital a/c or LIC premium already included
in total drawings of Rs 210000 or TOTAL DEPOSITED LIC PREMIUM ca be show as other assets in b/s, please clarify 5. petrol exp include in conveyace exp. as I mention above or it can be show separatly, please clear to me and other exp like telephone exp, electricity can be show if assessee not maintain exp record, please help me to clear the case thanks again......

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CA Harish Suwalka

CA Harish Suwalka (Expert)
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01 February 2013 1. yes, part dep. should be claimed if the vehicles are also used for personal purpose
2. ohk !
3.
balance should be as per bank statement (dont use calculated balance )
4. for a personal B/s, premiums are investement not a exp., no need to treat as drawings.

MALAY DAS

MALAY DAS (Querist)
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01 February 2013 dear harish sir
thanks for your valuable replies.can
a commission holder also show electricity exp,gift to accounts holder, accounting charges or any other exp ?please advice me thanks.....