Sumit Agarwal (Article Assistant (CA-Final)) (393 Points)
22 March 2013Hello friends
Suppose, I am salaried employee and want to prepare my personal balance sheet for the first time.i am filing my ITR from last 4yrs, income is below exemption limit.my ques is that as i am preparing balance sheet for the first time,how to decide the opening capital since i dont have any record of the same.shall i presume it anything as per the estimation of household expenses.plz guide me i really dont have an idea about it,
thanks & Regards
vinay hingu
(hard work is key to success)
(165 Points)
Replied 22 March 2013
you can show as initial capital brought by cash or bank but if you are salaried no need to file b/s
Jishnu Surendran
(Finance Manager)
(312 Points)
Replied 23 March 2013
Why do anyone having Income from Salaries need to file Balance Sheet ?
Sumit Agarwal
(Article Assistant (CA-Final))
(393 Points)
Replied 23 March 2013
we are just want to keep a track of assets and liabilties.Kindly help me out
Jishnu Surendran
(Finance Manager)
(312 Points)
Replied 23 March 2013
but Sumit you don't need to file your Balance Sheet with the Income Tax Department
Arpita
(STUDENT)
(55 Points)
Replied 24 March 2013
its not necessary to file B/s but u may make it at ur own requirement.
U have to consider following factors for this
1)ur employment period
2)ur annual salary
3)ur personal expenses
4)ur age(may be considered)
suppose u have earned salary of Rs.150000 p.a. for last 6 years.if u live with ur family where u are not so much conserned about ur expenses then i think u can save ur 55 to 60 % salary after meeting personal expenses.
that means u have created ur own capital 150000*6*60% =Rs.540000/-
u can show this as ur opening capital.
this 60 % ratio may be different based on ur deductions made by employer ,if he pays u 80 % salary in hand then ur saving may be low like only 45%.then compute ur capital in that manner.
5)u may add ur capital receipts also like any cash gifts made to u by any relative on ur bday or any occasion,generally we save this amount so it will make ur capital.
hope this wil help u.,give ur opinion.
Sumit Agarwal
(Article Assistant (CA-Final))
(393 Points)
Replied 24 March 2013
Jishnu Surendran
(Finance Manager)
(312 Points)
Replied 25 March 2013
Guys do we need to look into all of that to prepare a Balance Sheet of a salaried employee ?
Your Salary - your income
Your Personal Expenses - your expenses
For instance you have an annual salary of Rs. 2,40,000 and expenses of Rs. 1,50,000
then your profit or loss account shows a profit of Rs. 90,000 which ultimately goes to make up your capital...
the Balance Sheet shows
Liabilities Assets
Capital 90000 Cash/ Bank 90000
this will be the status in the first year of your employment..................in my opinion there will be no opening capital or capital brought in...during the first year other than your savings.....
albeit, in the second year your first year savings goes to make up your opening capital......
gifts, tax or anything else....account for it as your income or expense as the case maybe.....
if you have some savings even before your employment you will have opening capital...and corresponding cash/ bank balance.....but I'm not of the opinion in using the word 'capital', I think its better to use the word..'net worth'...
this is my suggestion...Sumit...your choice
CAclubindia
