What is cash profit?
a) Cash sales less exp
b) Profit from cash flow statement
c) Net profit when added back with depreciation and other non cash exp
d) Net profit when added back with non cash expenses and credit sales

Dear Sir,

sir I an working as accountant from last 4 yrs in trading partnership firm now i want to change but i don't have knowledge of ST,VAT how can i learn. i don't have any friend of to learn thing from them but please suggest any site to study that things from entry level to end please sir suggest me right way i am very worried about my career. even i also want to read all accounting standard and how its work can u please explain me by any of PDF Files or some other things

Depreciations is applicable to all fixed assets except the following:
a) Goodwill
b) Land
c) Machinery
d) Inventory

Inventories are valued on what basis as per Indian accounting standard
a) LIFO
b) FIFO
c) Weighted Average
d) Piece Rate

Payment of income tax comes in which activity of cash flow?
a) Tax activities
b) Operating Activities
c) Outflow Activities
d) Financial Activities

Suppose i received a building as gift..
Do i need to show it in my Balance sheet..
If yes then at what value..

what is the treatment for stale cheques in case of E cheque payments.i.e E cheque prepared and not authorized in Internet Banking. Please advice.

Company Profile: Manufacturing Concern.
Issue related to: Investment in New Project/ Expansion of existing units.

As per different contracts placed by the company, LD has been levied and collected from the payable bill amount to the contractors/ suppliers on account of delay in supplies and delay in work completion.

My concern is as what treatment should be done with the LD so collected.

Op.1: To deduct same from the Project Cost

If it can be established that the LD is in fact received in mitigation of the extra project costs incurred and capitalised by the company on account of the same specific events which gave rise to liquidated damages and that the said damages can be identified with the project, the Committee is of the opinion that the liquidated damages can be adjusted in the cost of the project.



Op.2: Show the equipment with full Cost and LD in P&L A/c as Other Income.

ICAI Expert Opinion:
LD is not directly attributable to the acquisition of capital equipment like trade discount and rebates.
They are also not adjustments in the price of the equipment. The damages results from inefficiency on the part of the supplier/ contractor. In view of this LD received form the supplier cannot be adjusted in the cost of purchase.

My stand is that in a project we are having hundreds of contract for different supplies and works. The delay can not be neck to neck match with the mitigation of extra cost of project or loss of production hence LD should be shown in P&L as "other income" however it also cannot be said that due to this delay extra finance is not spent (because there is financial loss towards project team's salary and salary of the contractor's expert for supervision).

Now what to do ?

Dear sirs,

Seek you advise on the following:-

We have procured a milling plant under deferred credit facility in CHF currency.Though the plant shall be supplied by the end of the year but the CHF rate seems to be fluctuating to much

If I adopt the rate on the day of txn I may end with a value that shall be "XX" for the capitalisation of the plant but subsequent payments to the supplier is the issue.
We shall be paying 6 monthly instalment in CHF so how do we treat the exchange. (since looking at the variation in the CHF rate the variation in expected to be too high).

Can we show it as change in the value of the asset every year or do we treat it as revenue expenditure & write it off. (Though there is no increase in the efficiency of the asset or its productivity )

Any Suggestion shall be most welcome.

Thanks & regards

Dear sir to all,


I wanna diposit 100000 rs(cash) in our bank.
what the entry of our ledger. and why

can u tell me.