08 September 2014 Suppose loss is of Rs.100000
and the balance in reserve & Surplus is Rs.500000
Reserve & Surplus Dr............100000
To Profit & Loss.......................100000
then closing balance of Reserve and surplus is:-
Rs.400000

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Querist : Anonymous

Querist : Anonymous (Querist)

08 September 2014 Parul Can you tel me treatment of interest expense in banking industry and service industry are different? How and what would be the treatmentfor both?

CA Parul Saxena

CA Parul Saxena (Expert)

08 September 2014 In Service industry interest expenses are simply treated as indirect expenses in books of accounts and if this interest is on account of penal interest like interest for late payment of tds then this is disallowed as per income tax act.But interest is like interest on overdraft then this is allowed as finance cost as per income tax act.

As far as Banking industry is concerned i dont have idea.

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Querist : Anonymous

Querist : Anonymous (Querist)

08 September 2014 Parul this was the question asked in interviews plz tel me treatment in banking industry too with somebody else help

Querist : Anonymous

Querist : Anonymous (Querist)

08 September 2014 Parul tel me the treatment of interest on overdraft which is allowed as per IT Act

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