Sir

In the balance sheet, always the new provision for bad debt is deducted from the Debtors and then provision for discount on debtors is calculated on it.

but when old provision exceed bad debt and we have to create new provision which will be calculated on (Debtors-bad-debts).

then new provision automatically includes surplus old provision which is deducted from pr. year debtors for calculating pr. year provision on discount on debtors.

so, this means double deduction of surplus provision in current year.

so, i think that we have to deduct current year provision for calculating provision on discount on debtors instead of new provision.

for ex.

debtors= 200000(at the end of year)
bad-debt= 3600
provision on doubtful debt(1-4-20xx)= 7500

Adjustments:

1.)further bad debts= 2000
2.)we have to create new provision for doubtful debts @5% on debtors.

therefore, new provision is calculated as

200000-2000= 198000

198000O*5%= 9900.

therefore current year provision is Rs.8000.

but 7500-3600-2000= 1900 i.e surplus

surplus+C.Y provision
1900+8000= 9900

i.e it includes surplus resulting in double counting for calculating provision for discount on debtors.

because 7500 includes 1900 which is ded. previously and also includes in 9900 and ded. in c.y also.

why.......................................

if building constructed and expenses incurred for that at the various dates during the financial year than how to capitalised building exp and deprecation calculate from which date of addition.
please clarify

Dear Sirs,

We recently acquired 100% equity a company and we paid consideration of Rs. 10.00 Crores to their shareholder and Share Capital of acquired company is 7.00 Crores. In holding company financial statements we are showing Rs.10.00 crores as Investments.

now we are preparing consolidated financial statements so can any body help me for treatment of investments in consolidated financial statements.

DEAR SIR,


CAN YOU PLEASE SEND CASH FLOW STATEMENT (DIRECT&INDIRECT METHODS) NEW FORMAT AND fUNDS FLOW STATEMENT NEW FORMAT. I WANT SOME TEXT ON BOTH CASH & FUNDS fLOWS.

A company has outstanding loan of Rs.5crore of a private bank (hdfc bank) and have current account balance of Rs.3 crore. Whether company of 31.03.2011 can net off the loan with current account balance in the balance sheet. If not, what are the likey consequences if company insist to do that?

DEAR SIR,

CAN YOU SEND THE ENTRIES FOR RENT PROVISION , ELECTRICITY PROVISION AT THE END OF THE YEAR. EVERY ALSO NEED TO PASS J.V AGAISNT BILL PAYMENT. I NEED PROVISION ENTRY FOR LAST MONTH(i.e MARCH).
UNDER WHICH HEAD RENT PAYABLE & ELECTRICITY CHARGES PAYABLE WILL COME.

hwen rent is paid the following entry is passed.
rent ac.....dr
to cash
as per modern approach when expense increase it should be debited.But here actually expense is declining.why it is not credited

DEAR SIR,

I WANT J.V ENTRIES FOR SUBCONTRACT BILLS & CONTRACT BILLS .(WITH BILL RECEIPT, BILL PAYABLE AND ALL DECTIONS MOBILISATION ADVANCE, TDS , VAT, SERVICE TAX & RETENTION MONEY)

Sir i am new accountant in a company but after some time i realize my earlier accountant not maintain records properly now how can i solve this problem i discuss with CA & my company boss but they not interested and told me you take care all of this as you can. because CA is not appointed in our company we just contact for him at the time of return filing & Audits so this is not responsibility of him & company owner have not good knowledge of Accounts Please what can i do & what record is very important in pvt ltd company to show income tax & others like in labour law etc?

we have issued service tax invoices in F.Y. 2010-2011 of 6 lacs to our customer and filled our service tax return also. Now the customer intimate us that they have deducted Rs. 2 Lacs under those invoices. Now whether we can enter the debit notes on 31.03.2011 or in Current Financial Year. We can not file the Service Tax Return because Date of Service Tax Revised Return is 90 days. Please advise