tax audit presentation

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asha fernandes (Querist)
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29 July 2008 dear sir
in case of presentation of financial accounts is the disclosure of previous years figures compulsory. if so under which standards .
2) are even the figures of the previous year are required in the balance sheet also
3) in case of a proprietor having investments in mutual fundds or shares ,,is it correct to show them in the books of business as they are not business assets.

CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Expert)
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29 July 2008 Querywise reply is as under:
1 & 2. Previous Year figures are required to be given in case of a company. Schedule VI to the Companies Act requires that previous year figures be given for items of P&L and BS.
3. In case of proprietor, two B. Sheets may be prepared, one for Business Onle and another for Personal Assets including the Investment in Business; the investments may be shown in the Personal B.Sheet. In case, u account for investments and business assets in one BS, then also it will be a correct proposition. It is worth mentioning that as per section 44AB, it is the person who has to get his accounts audited which implies that all the assets and liabilities are under the scope of audit and in such a case only one BS will serve the purpose.