Latest Query & Reply

A proprietor have two line of business ( one seeds plant and other fruits and vegetables ) they have separate bank account, loan account but no separate saving account.

He had registered with GST under Seeds only and not providing any details of the fruits and vegetables in GST.

Last Year Both the firm was merged for the purpose of tax audit with two trading a/c and merged the expenses in PL and with single Balance sheet. 

Now bank require two balance sheets.

Reply

A Sole Proprietorship Firm does not have separate identity apart from its owner i.e. Sole Proprietor. A sole proprietor can operate multiple businesses under one PAN Card.

For income tax purpose  proprietorship firm are not separate entities, therefore assessment of all the firms registered under one PAN card, is done through merger of their accounting information. And assessee can also make stand alone balance sheets for different businesses if required. Hence, if bank required, you can prepare two separate balance sheets.