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How to take opening balances when accounting for past years is not maintained...???

Santosh Nalawade (Practice) (355 Points)

10 February 2016

I m going to do accounting for my client for f.y. 2015-16. he is doing business since last 10 years. but he didn't maintained books of accounts till date. Please guide how can I take opening balances of assets and capital as on 01/04/2015.

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7 Replies

mohammad rasool baig (Management Consultant) (1026 Points)
Replied 10 February 2016

In the query please give clarity like any invoices of FA ia available & whether tax audit is applicable for the client & turnover of the client exceeds 1 crore or not......

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Santosh Nalawade (Practice) (355 Points)
Replied 10 February 2016

Tax audit not applicable, and fixed asset register is not available, client is doctor having own hospital

mohammad rasool baig (Management Consultant) (1026 Points)
Replied 11 February 2016

If the client have the year of purchases of fixed assets then backward calculation can be done....otherwise you have take the help of valuator and get the assets valued...... Take the resale value as the fixed assets value.....

Santosh Nalawade (Practice) (355 Points)
Replied 11 February 2016

Thank you. Can I use balancing figure between value of asset and value of liability as capital account balance...???

Santosh Nalawade (Practice) (355 Points)
Replied 11 February 2016

Thank you. Can I use balancing figure between value of asset and value of liability as capital account balance...???

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mohammad rasool baig (Management Consultant) (1026 Points)
Replied 12 February 2016

Yes you can...........

But please once confirm with your client how much he wants to maintain as capital and take care about the cash & bank balance in the balance sheet of the client.

Santosh Nalawade (Practice) (355 Points)
Replied 13 February 2016

Ok. I will take exact bank balances , loan account balances and values of fixed assets and whatever will balancing figure will go to capital account. Thank you sir