Reflection of fd in balance sheet of firm after filing retur

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 December 2014 fixed deposit created from partners personal account in dec 13 and return filed of firm as per due date without showing fd

how to show fd in fy 13-14????

Ketan Shah

Ketan Shah (Expert)
Follow

27 December 2014 The fixed deposit created from partner's personal account is personal affair of the respective partner. The books of firm will not be affected in such case.

CA Kumar Mukesh

CA Kumar Mukesh (Expert)
Follow

27 December 2014 It seems that partners makes FDs in the name of the firm from their personal accounts, the entry which is missed to be in books of accounts of Firm, and consequently interest on FDs are also escaped to taxed.
It that case it is suggested to file a revised return of Income under section 139(5) of the Act, by taking accrued Interest income and TDS if any. (If Income from other sources are recognized on other than cash basis)

And make the following entry in the books of firm as on 1st April, 2014
For FD
FDs A/c Dr.
To Partners Capital A/c
(Being FDs are earlier was missing to be entered now rectified)

For Interest accrued on FDs
FDs a/c
TDS on interest
To Interest on FDs
(Being interest accrued on FDs for the FY 2013-14)

Note: If you are following cash basis accounting only first entry required to be made, if no TDS is deducted. If TDS is also deducted then pass the the following additional entry
TDS on FDs A/c Dr
To Interest on FDs

Message likes : 1 times

Upgrade to CAclubindia Pro. Subscribe Now!

CA Kumar Mukesh

CA Kumar Mukesh (Expert)
Follow