Proprietory firm and expense of proprietor

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 August 2013 In the audit of a proprietory firm with tax audit, do I need to check vouchers and documents for payment made of Proprietor's personal expenses?
What other points to consider while checking Capital account of Proprietor in books of Proprietory Firm?

CA Parul Saxena

CA Parul Saxena (Expert)
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19 August 2013 Yes you have to verify vouchers and do the ledger scrutiny.

Querist : Anonymous

Querist : Anonymous (Querist)

19 August 2013 How is ledger scrutiny done?

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CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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19 August 2013 check the major transactions done in the prop capital account cross verify them,check the supportings available, check all the cash transactions etc.