Turnover Limit for Drafting Balance Sheet
There is no turnover limit for drafting a balance sheet for Registered Nurses (RNs) in India. However, if an RN’s turnover or gross receipts is Rs. 1.5 crore or more in the previous financial year, they are required to get a statutory audit done.
The statutory audit report must be filed with the Income Tax Department by the due date, which is usually 30 days after the end of the financial year.
The balance sheet is a financial statement that shows the assets, liabilities, and equity of a business at a particular point in time. It is a required document for all businesses, regardless of their size or turnover.
The balance sheet is divided into two main sections:
1. Assets:
These are the resources that a business owns, such as cash, accounts receivable, inventory, and property and equipment.
2. Liabilities:
These are the debts that a business owes, such as accounts payable, notes payable, and long-term debt.
The equity section of the balance sheet represents the owner’s investment in the business. It is calculated as the difference between the assets and liabilities.
The balance sheet is an important financial statement that provides a snapshot of the financial health of a business. It can be used by creditors, investors, and other stakeholders to assess the business’s ability to repay its debts and generate profits.
If an RN is required to get a statutory audit done, the auditor will also prepare a balance sheet as part of the audit process. The balance sheet will be reviewed by the auditor to ensure that it is accurate and compliant with the law.
To visit: https://www.mca.gov.in/
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