Suppose company A is the holding company of 4 companies b,c,d & e. Co. A is in EPC business and co. b,c,d & e does build operate and transfer(BOT) projects. total turover of A includes 20% external contracts and rest 80% from its subsidiaries. subsidiries give the construction of assets contract to A.

On consolidation how should intra group transactions be eliminated? Intra group transactions includes turnover in the books of A which are capitalised in the books of subsidiaries.

Please suggest the consolidation procedure for elimination of intra group transactions.

A newly constituted partnership firm is purchasing a franchise.How to account the same inorder to get income tax benefits. whether to charge it as goodwill or asset. If goodwill can we charge 25% depreciation as goodwill is treated as intangible asset in AS 26 or to be charged under fixed asset or priliminary expenditure. Can anyone give detailed notes.

Dear Experts,

ours is a pvt ltd company, we have paid stamp duty in the form of franking amounted to Rs.1,10,000/- towards Mortgage & Hypothication of plant & machinery in favour of bank.

What will be the ledger head

Hi Experts,
One of our client taken lease for 10 years and the life of the asset is 15 yrs,and they recognized the lease asset as financial lease(because for subtanial period asset has taken on lease) and calcluated dep accordingly .However in the lease agreement it is mentioned that lessee has right to return the asset at any point of time,Now after 3 years our client want to return that lease asset because better machine available in the market than the lease asset.

My query is
1)Now,how to deal with the above situation?2)wat abt the dep which our client provided previously?
3)Suppose instead of returing the lease assset if our client retain the asset for 2 more years in such case it becomes operating lease in such case wat i should do for the entries which they have given based on finacial lease?and wat will be the prosecpective entries?

And according to which para of As-19 we can gve above treatment

PF : Provident fund is calculated @ 12% on the basic
salary, which indeed is deducted from Employee's salary and
the same plus 12% on the basic is contributed by the
employer. So the aggreate 12% + 12% is remitted to the
Provident fund Department

ESI : Employee State Insurance is calculated at 1.75% on
the gross salary of the employees whose salary is below Rs.
10000/-permonth (w.e.f 2008) and Employer contributes 4.75%
on the gross salary of the employee and the agreegate 1.75%
+ 4.75% is remitted to the ESI Department

VAT : VAT percentage is 1, 4, 12.5%. It is a tax which is
charged on the basic value of the product by the seller
from the buyer and the same is remitted to the Sales Tax
Departement. for eg if the product value is Rs. 100 and the
tax applicable is 4%, in such case a bill is raised for Rs.
104.




THIS ENTRY CORRECT OR NOT PLS....

dear sir

i have created a comopany in tally and created ledger in that company further i created same name of company for next year .
but i want to know how i can transfer previous company ledger in next year company in tally accounting

What exchange rate to be considered for booking the import purchases ? Whether rate on date of Bill of Entry or Date of Invoice or Date of Bill of Lading ?

hello

one company not started commerical activity and hence profit and loss a/c is not prepared. i have capitalised all expenditure and grouped as expenditure during construction period.. but i come to know that icai has withdrawn this guidline.. so wht i can do??

can i grouped under expenditure during construction period is correct??

so i grouped under pre and pre exp??

as per guidline

plz help me??

An old machinery (worth Rs. 84000) exchanged for a new machinery (worth Rs. 324000) by XYZ ltd payment made 256000
what will be the journal entry for this

SIR/MADAM

I WANT 2 KNOW THAT IN AS-13 (INVESTMENTS)UNDER THE HEADING RECLASSIFICATION OF INV. IT WAS WRITTEN THAT

a.WHEN LONG TERM INV. R RECLASSIFIED TO CURRENT INV.THEY R VALUED AT LOWER OF COST & THEIR CARRYING AMOUNT.&

b.WHEN CURRENT INV.R RECLASSIFIED TO LONG TERM THEY R VALUED AT LOWER OF COST & FAIR VALUE.

PLEASE EXPLAIN THIS.
I KNOW THAT INVESTMENTS R CLASSIFIED INTO 2 i.e CURRENT & LONG TERM.

PLEASE HELP.