A balance sheet comprises of assets and liabilities of a trader when filing ITR3. The principal rule being assets should equal liabilities. On Quicko, the rule will be self-applied when you enter your assets, it will match with the proprietor's capital in liabilities.
You can add them by going to Incomes> Business and Profession> Select assets/liabilities
You can refer to this article to add/edit assets and liabilities on Quicko.
The following are the types of Assets you can add to your Balance Sheet:
- Bank balance as of the end of FY: A bank balance is the funds in your bank account at a specified date. It can be a current account or a savings account. If you have a positive deposit account balance, but an overdraft on your current account, they should not be combined. The deposit account should appear in current assets and the overdraft in current liabilities.
- Cash balance as of the end of FY: Cash in-hand balance
- Balance with the broker for the FY: Balance held with a broker during the financial year
- Other current assets: These are assets that do not include cash, investments, receivables, and inventory and can be converted into cash in less than 1 year. For example- Prepaid expenses and marketable securities.
- Debtors: Current assets are assets that are expected to be converted to cash within 1 year.
Debtors are essentially people who owe you money and the period of credit is within one year.
- Stock/Inventory: Stock is further split down into raw materials, work in progress, and finished goods. Stock is primarily held with an intention for resale.
The following are the types of Liabilities you can add in your Balance Sheet:
- Proprietor's capital: Proprietor capital is the amount that you bring into the business activity. The proprietor's capital is also known as the Owner's capital.
Example: The amount that you started trading with will be reflected under the proprietor's capital. Now, every additional cash that you bring into the business activity will be added under the proprietor's capital.
- Loans received: Loan received includes the amount of money you have borrowed from different sources such as lenders, financial institutions, and banks in order to support your business goals.
- Provision for expenses: Provision for expense refers to the amount set aside from the company's profit for specific future expenses or liabilities.
For example- Bad Debt Provision - Amount set aside to cover the debts encountered during an accounting period that is not expected to be paid.
- Creditors: Creditors are people to whom you owe money. Creditors can be classified as either Personal or Real. Personal Creditors are people who loan money to friends or family. Real Creditors are banks or financial institutions.
- Other Current Liabilities: Other current liabilities are the ones that don't fall into any of the categories. Few examples of other current liabilities are bank overdrafts, interest payable, bills payable, etc.