Cash balance adjustment procedure

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. loan from different persons sales increase gift from relatives
4.any other options
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)