How to manage accounts

garvit bharti (CA FINAL) (370 Points)

16 August 2014  

hi all,

lets pick the financial year 2014-15

one of my client is doing business as an individual and made some expenditures for the business this year upto now..I am maintaining his accounts as an individual and making entries properly.

Client had also a registered partnership firm and which was not active even after its registration itself. Now he has converted that partnership firm into sole proprietorship firm.

Now my questions are:

1. How should i manage the accounting of client as an individual or as a proprietorship?

(eg: should i continue the accounting of the individual as it is in the proprietorship firm because we all know that for both individual and proprietorship purposes, only INDIVIDUAL PAN is used only.)

2. At the end of the financial year 2014-15, when i will file the income tax return of the client , will i have to assess all the income of individual (i.e upto now ) & proprietorship firm (i.e after now) under individual pan only???

pls suggest

thanks