Accounting Treatment

This query is : Open

Govarthan. P (Querist)
Follow

21 September 2009 Sir/Madam

Under what head the following has to be shown, Current Assets or Loans & Advances

1. TDS/Advance Tax

2. Retention Amount/With-held Amount

3. Deposits like Telephone Deposit, E.B. Deposit,etc

And also whether these items will be considered for calculating "Current Ratio"?

CA Binal Shah

CA Binal Shah (Expert)
Follow

21 September 2009 Hi,

1. TDS/Advance Tax :- Loans and advances under the head adv with govt authorities
2. Retention amt. :- I cant understand this,plz explain the exact nature
3. Deposits :- Under the head loan and adv- as deposits

Item - 1 & 3 wil not be considered while calculating Current ratio

Govarthan. P

Govarthan. P (Querist)
Follow

21 September 2009 In case of contracts, a percentage of amount, say 5% of Contract value, will be with-held/deducted and paid after some period of time, say 6 mnths r 1 yr.

Govarthan. P

Govarthan. P (Querist)
Follow

21 September 2009 sir, But i ve seen some banks take TDS n Deposits for calculating Current ratio while giving OD/OCC?

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now