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Balance sheet and capital question

Kollipara Sundaraiah (B.com) (2963 Points)

28 November 2021

how to preparation balance sheet and capital account of salary person.

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5 Replies

sabyasachi mukherjee (27310 Points)
Replied 28 November 2021

Salaried person does not have any capital account

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Giridhar S Karandikar (Team Lead) (7543 Points)
Replied 28 November 2021

Do you mean to say to prepare for the partner's of the firm.

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Vishal Manakshe (299 Points)
Replied 28 November 2021

There are 2 ways

1. If you are preparing P&L account

Credit your incomes in P&L such as salary, bank interest, other income

Debit all expenses in p&l such as rent expenses or other expenses from bank account

Then tr the balance to capital account. Also credit/debit Tax expense, any gift received in cash/kind etc

2. If you are not preparing P&L account

Then credit/debit all such income or expenses as said in above point 1, just pass direct entry to capital account

Any difference in balancing the balance sheet will be your withdrawal from capital account

Varshit Shah (Self Employed) (676 Points)
Replied 28 November 2021

Hi

when you are preparing balance sheet for salaried employee , there will be few ledgers which will play important role.

1. capital
2. bank
3. cash
4. assets
5. investments
6. loans recd.or given
7. drawings
8. salary recd
9. other income like interest , dividend etc
10. Loan like housing loan

simple.way to prepare balance sheet is just account all.the bank entries as fits in above 10 ledgers. if you are.doing it for the very first time then take the total.of opening balance of all assets , investments , bank and cash as reduced with known liability like Home loan and that will become your opening of capital account.

based on the entries passed in each individual account , take the necessary action to close the account , wherever required and your balance sheet will be ready.

sabyasachi mukherjee (27310 Points)
Replied 09 December 2021

Hi,
Balance sheet cannot be directly prepared. First the necessary transactions are to be reflected in the ledger. The respective ledgers after the year end transaction can either directly affect last year ledger balance sheet item. Now the question arises what is a balance sheet item ?
let's explain it
1. Current Assets
2. Non current assets
3. current liabilities and provisions
4 long term loans

there are some ledgers which affect the