Is a P&L Account or Income and Expenditure acccount prepared for an individual professional? Please give resons for the answers!!!!!!!
Ashok
(Industry)
(416 Points)
Replied 25 December 2013
Yes sure, why not. just keep in mind the separate entity concept. That means keep the personal transactions out of the books, except those via a vis the profession, such as drawings or investments. It's good to have fin stat prepared for individual irrespective of business and prof.
Vikas Gupta
(Tax Executive)
(530 Points)
Replied 26 December 2013
CA Dhruva Kalamanji
(Chartered Accountant )
(1996 Points)
Replied 26 December 2013
Yes it will be maintained because see in income tax act one of the head is income from busines or profession. Even profession have to go under audit and also its a prudance to keep books of account
If your question is which accout to maintain that is wether incomeand ependiture or p and l then it is income and expeniture.
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