A business person purchase of new site value rs:20 lacs.but cash on hand balance available rs:15 lacs in books at site purchase date.
1.cash loan from different persons
2.cash sales increase
3.cash gift from relatives
4.any other options
Question:
A person above mentioned options cash balance adjustment correct procedure rs:5 lacs in books.
Hey @Sundaraiah_Kollipara, Cash balance adjustment can be done with the below-mentioned options & have to be reported accurately in the balance sheet while filing ITR:
- Cash loan: Liabilities - Unsecured Loans
- Cash sales: Increase in turnover tab input
- Gift: Income from other sources > Exempt Income (Exempt if up to INR 50,000)