I.t. individual status return filed assess cash on hand balance as on 28-02-21 Rs:10 lacs in books.assess cash balance transfer to capital account as on 31-03-21 and reverse entries 1st April -21 passed in books allowed in I.t. act.
Question:
above transactions accounting entries passed procedure in books .
Hi,
Accounting is correct but 10 lakhs you show as drawings in books of account on 31/03/2021, to reverse that entry proprietor must have other source of income.
In case of assessment proprietor will be in trouble.
better not to reverse the entry on April 2021.
CAclubindia
