17 November 2014
ONE OF MY CLIENT RECEIVED RS 5 LAKHS AS RENT DEPOSIT AND 15 LAKHS GIFT BOTH ARE ACCOUNTED IN CAPITAL ACCOUNT BY CLIENT WHETHER I SHOULD QUALIFY THESE AMOUNT NOT CHARGEDE TO PROFITS LOSS ACCOUNT CAPITAL RECEIPT UNDER QUESTION NUMBER 16 PLEASE GUIDE ME
17 November 2014
1)If he is showing rental income then that rental deposit may be received from tenant hence if he received rental deposit definetely he has to account to capital account only,..
can be accounted as current liability if rental income also showing in financial statements
2)Gift from relative is exempt,Just examine whether it is really a gift or any income escapement, if u beleive it as income escape u may mention it as comment in report
CAclubindia
