one of sec 44ada professional income I.t. return filed assess cash on hand balance as on books at present Rs:15 lacs.but Assess purchases of site value rs:27 lacs . question:
Assess Rs:27-15 =12 lacs difference amount how to adjustment producer for cash on hand balance in books.
Show it as capital inducement (capital added) in cash by proprieter / partners
entry as below
Cash A/c dr.
to propreiter / partners capital account
the date of inducement should be before the site purchase date.
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