Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

Post Office PPF Balance Shown in Balance Sheet.

Tax Concept (Business & Economy Website) (134 Points)

14 June 2017

Dear Members,
I have a Post Office PPF A/C.
I have Deposited Rs. 45000 in That A/C and get RS. 14570 as Interest During F. Y. 2016-17.
Now My Question is that Will Rs. 59570 Shown in Balance Sheet or not For the F.Y. 2016-17.

Reply
Follow
Share

11 Replies

Tax Concept (Business & Economy Website) (134 Points)
Replied 14 June 2017

Thanks in advance

Upgrade to CAclubindia Pro. Subscribe Now!

Poltu Ghosh (Job) (1865 Points)
Replied 14 June 2017

Obviously total balance with interest will come in balance sheet

Tax Concept (Business & Economy Website) (134 Points)
Replied 14 June 2017

Thanks

PRABIR PAUL (*****Accountant***** Never insult to any person for any kind of lack of knowledge or misread.) (1443 Points)
Replied 15 June 2017

"Obviously total balance with interest will come in balance sheet"

Kindly understand the difference between balance sheet and Profit & Loss A/c

If you invest in PPF a/c that means you will get the amount in time of maturity. So you can declare the amount in Asset side in Balance Sheet................ Which is Rs. 45,000/-

But interest earn from from PPF is not your asset it's your income. So the income doesn't reflect in asset side of Balance Sheet.... Income shall be declare in P/L A/c..... Which is Rs. 14,570/-......

In sort to say:-

Rs. 45,000/- Asset -- Balance Sheet....

Rs. 14,570/- income--- P/L A/c......