Accounting treatment

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Nitesh (Querist)
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21 December 2012 Dear All,

We are having a private limited company and now we would like to make a new unit in the name of 'UNIT-II'.

Plesae advise us how can we maintain accounts for both the units. UNIT - I & UNIT - II.

Thanks
Nitesh
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Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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21 December 2012 If you want to separate maintaining of books for Unit II then you can maintain separate books of account and at final i.e at the time of preparing of final reports at the end of the year consolidate both the units final statements. If you not required to maintain separate books for unit II(i.e you didn't want to identify income,expenses,etc... from unit II) then you can insert that unit transactions also in Unit I and in the narration you can comment regarding for which unit it for.

OM SAI SRI SAI JAI JAI SAI

Nitesh

Nitesh (Querist)
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22 December 2012 Sir, what about the fixed assets purchased for unit II.

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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22 December 2012 They also related to the company. If you are maintaining separate accounts for Unit then fixed assets related to Unit II show at unit II books.

OM SAI SRI SAI JAI JAI SAI

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