buxi (student) (36 Points)
23 July 2013Hi All,
I am not finding answer to a question regarding cash transaction done by my proprietor. at the initial stage of the business my prop bring cash to bear all expenses of the business to the tune of Rs.6Lakhs and when business geared up he again withdraw same cash from bank by way of ATM draw. Now the business is under 44AB audit. Please clarify me whether it would be a problem on audit. Thnks in advance.
Rajesh
(student)
(193 Points)
Replied 23 July 2013
Hai,
Please Note,
Just Debit -Drawings
amount he withdrawn through ATM.
Thanks
buxi
(student)
(36 Points)
Replied 23 July 2013
Hi my concern is different.. is it affecting Audit process?
Rajesh
(student)
(193 Points)
Replied 24 July 2013
Dear Buxi,
While auditing if Drawings is more than previous year. auditor will question?
even though, it is proprietor concern. Just debit the drawings and go ahead.
But take care,
Because, Drawings will come under Capital A/c.
So, Debit Side should not be more than credit side
Debit Side-Drawings A/c
Credit Side-Capital A/c.
Hope you will understand.
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