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Where to show drawings in balance sheet (itr 4)

Monica_S (Self Employed) (5 Points)

20 January 2017

Where to show drawings in filing Balance Sheet for professional under ITR 4?

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5 Replies

Suresh Pai S (Tax Consultant) (1029 Points)
Replied 21 January 2017

Only the capital account balance is shown in ITR. Drawings are not required.

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Suresh Pai S (Tax Consultant) (1029 Points)
Replied 21 January 2017

Drawings is not a balance sheet item. It is transferred to capital account at the end of the year and then only capital account balance needs to be taken to balance sheet.

Monica_S (Self Employed) (5 Points)
Replied 21 January 2017

Thanks for responding Suresh. Please let me know - The proprietors capital would be Net profit from P&L - Drawings?

I filed as self employed professional and claim no expenses. All gross receipts are treated as income. So I just want to know how will that he reflected in Balance Sheet?

Thank you

Rohit (Fhk) (63 Points)
Replied 21 January 2017

How Gross receipts can be treated as income..
Income Should be Gross Receipts minus expenditure..
And Suresh g is right the drawings should not be shown under balance sheet.. it forms the part of capital account.. and capital shown in balance sheet is net of drawings (Opening Capital+Net Profit-Drawings-other personal expenses)