As-9
This query is : Resolved
Guest
Guest
(Querist)
12 October 2011
a company has purchased plant and machinery in the year 2006-2007 for Rs. 45 Lakhs. a balance of Rs. 5 Lakh is still payable to the supplier for the same. the supplier waived off the balance amount during the financial year 2009-2010. the company treated it as income and credited to profit and loss account during 2009-2010. whether accounting treatment of the company is correct?
30 October 2011
It should ,instead, have been deducted from the cost of asset as per AS 10 which will result into lower future depreciation prospectively. Therefore, the given treatment is not correct.
Regards, CA Shakuntala Chhangani
Regards, CA Shakuntala Chhangani
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- CG Tax On residential property
- Post Office RD Interest
- Applicable TDS for Purchase of Flat from NRI
- Eway bill for machinery reparing
- Claiming exemption of perquisite for employee-owned car under New Tax Regime in ITR-2
- Gift of mutual fund units to daughter
- Not able to file ITR
- Reporting of STCG on Property in ITR
- NRI ITR2 account in 2025-26 ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,.
- Building tax payment deduction in rental Income
- Presumptive income under Income tax act 2025
- Clarification Required on Business Code for 44ADA
- Under construction property in ITR
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
