Balance sheet for F&O audit for last year

Taxation
1

Hi everyone,
I have provided P&L and tax P&L statements from ‘Console’ to my CA for last years F&O audit but he insists that he needs ‘Balance sheets’ for F&O which is not available on ‘Console’.
Can you please suggest how can I get these balance sheets to get my audit done

2

Hi @nitinnanda

You can find all the direct information related to trading activity on Console’s Tax P&L .

While P&L talks about the current year’s business performance, Balance sheet is a summary of your overall personal net worth.

@Quicko can help further regarding this.

Varsity has a section explaining this as well -

3

Thanks for your response.
How Do I get a summary of the net worth of my zerodha at that point in time since I had nothing in my dmat and had open F&O poistions

4

A Balance sheet is not a report that can be generated by Zerodha.

Balance sheet represents the assets and liabilities related to business
(Excluding your personal assets)

Only you can know about this.

Assets would include:

Bank and cash balance (related to your business)

Your computer, furniture and vehicle etc… (if they are used in relation to your business of trading)

Liabilities would include:

Borrowings

All expenses related to business that are accrued and payable at the end of the year
(Rent, electricity, internet, interest etc…).

Moreover, if you had filed your income tax return during the previous year, your CA can check the previous year’s return to know what assets and liabilities were reported earlier and you can provide the updated status of such assets and liabilities as on 31st March 24 to complete the Balance sheet.

2 Likes
5

He has to prepare it by investing his effort. Otherwise what is the thing you are paying him for?

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6

Preparation of financials is the responsible of the assessee. An auditor shall only express his opinion on the same.
So basically you pay a CA for his opinion on the financials prepared by the assessee and not to prepare it.

Practically it’s a lot different and most CA will prepare them for the assesee. But legally that’s wrong. :grimacing::grimacing::grimacing:

1 Like
7

So hire one CA to prepare and another to audit ??

8

Chartered accountant ≠ Accountant :wink:

With that said, more often than not, for small businesses, the difference between the two is blurred, as the CAs end up performing the work of accountant too.

In the given situation, the CA asking for the Balance sheet assuming the assessee would have already prepared the same during the previous year, if he doesn’t have one, he can provide the details of assets and liabilities that can help the CA complete the Balance sheet and file returns.

1 Like
9

Mostly not for Return filing of small businesses but Yes when it involves an audit.

When your are expected to audit a business entity, you are expressing an opinion, and you can’t express an opinion on something that you prepared.

The CA needs to remain independent while expressing an opinion during an Audit, so can’t perform both roles of accountant and an auditor.

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10

Hire an accountant to prepare accounts. Unless you are too rich to make a a CA prepare books of accounts. :stuck_out_tongue_closed_eyes:
Appoint a CA to audit it.

1 Like
11

ok, didn’t know but makes sense.

That’s what CAs seem to do for ITR filing even when audit is not involved, they delegate the grunt work to other people = in house accountants.