As per AS 26 para 56 In some cases, expenditure is incurred to provide future economic benefits to an enterprise, but no intangible asset or other asset is acquired or created that can be recognized. In these cases, the expenditure is recognized as an expense when it is incurred.

For example, expenditure on
research is always recognized as an expense when it is incurred.

Others include

Expenditure on start-up activities (start-up costs), unless this
expenditure is included in the cost of an item of fixed asset under AS 10.

Start-up costs may consist of preliminary expenses incurred in establishing a legal entity such as legal and secretarial costs.

Expenditure to open a new facility or business (pre-opening costs)

Expenditures for commencing new operations or launching new products or processes (pre-operating costs);

Expenditure on training activities; Expenditure on advertising and promotional activities

Expenditure on relocating or re-organising part or all of an enterprise.


I want to know whether the conclusion drawn below from the above statement is correct or not.

That means issue expenses relating to shares either by a new company or an existing company is to be treated as an expense.As this is an expenditure in the nature of advertising or promotional activity.That means now the concept of deferred revenue expenditure in no more even schedule VI format prescribes for it?

Diff. between bill, invoice and cash memo when these are issued to customer by a seller. and what is relevant from customer and accounting point of view? On what basis the final figure/bill amt can be made. Pls advice.

A Company 'a' had started a Plantation for Rubber Trees few years back.
All the Exps. for Plantation were Capitalised.
Now, Rubber Plantation has started and hence, Commercia;l Production of Rubber has Started.
I would like to know the Accounting for such a Company.

DEAR SIR
I AM WORKING IN A CONSTRUCTION FIRM LAST SIX MONTH WE DON’T HAVE ANY PROJECT . NOW THE PROBLEM IS WE HAVE SIX HEAVY VEHICLES AND WE WANT TO MAKE MAINT ANANCE OF THIS VEHICLE,AND I WANT TO MAKE DEPRECIATION ALSO
Q THE MAINT COST WILL AFFECT DEP CALCULATION OR NOT
Q1, THIS MAINT COST WHERE WE WILL CHARGE
Q2, THE MAINT COST WE WANT TO DEDUCTED FROM ORGINAL VALUE OF THE VEHICLE OR NOT. PLEASE GIVE ME THE ADVICE .
PLEASE GIVE ME THE ENTRY ALSO.

i need journal entries for
paid insurance premium Rs. 5000 for a shop
distribution of free samples Rs. 10000
loan to mudit
repairs to buildings
Please help me

Sir..
Plz guide me how to make J.E's on maintaince of Imprest Account.

Suppose I moved a cash amount of Rs 10000.00 for petty expenses in the office. What will be my J.E at the time of disbursment of this amount and how to account at the time of booking the expenses..?

Need help..

Hi,

Can any one tell me when to recognise revenue in case of FOB & CIF export sales ?

Pls reply urgently.

Kinjal Shah

Dear Experts,

What should be the amount of bonus to be paid to an employee if his salary is increased from Diwali to Diwali?

Example : If a persons salary was Rs.5000/- in Nov 2009 & it was increased to Rs.12000/- from June 2010.

Thanks

If an employer paid LIC premium on life cover of an emplyee upto Rs. 5,000/- as a Diwali Gift. It is taxable in the hands of employee or not???

i need journal entries for
paid insurance premium rs.5000 for a shop
distribution of free samples rs.10000
loan to mudit
repairs to buildings