what is "Sale of Goods on Approval or Return Basis"

If company has found out that there was some mistake in closing stock of the last year and actually it is not physically in existence say 114 million stock. Then what will be the treatment of this item in profit and loss account?what will be the principle behind it?

I am a teacher in XI std teaching Accounts basics
there is a conflict in two text books i referred to regarding interest on drawings.

Text 1 - SCERT
a. Capital a/c Dr.
Interest on Drawings a/c

Text 2 - Private authors
b. Drawings a/c Dr.
Interest on Drawings.

which of the journal entry is correct?

following entry is passed for pur of fixed assets by a pvt. company.

1)office equipment a/c--drRs1000
vat@12.5%-------------drRs125
To Party A/c-----------------Rs1125

2) office Equipment a/c -----drRs30
To Vat@12.%---------------Rs30

plz. let me know whether this entry is correct or not.

plz. someone send me file containing treatment of vat on various fixed assets.

my id abhipcc@rediffmail.com

what is face value of a share?
Is it after adding premium and deducting discount or its just the normal value.

sir how much purchase required for sales in mfg. firm.. what should be the ratio of purchase and sales.
sir,request to all Ca-Club members please assist me with the example.
i am thankfull to all of you.
thanks
virender

Cost of Machinery on 1.4.2008 - Rs. 5 lakhs
Depreciation for 2 years - Rs. 2 lakhs
WDV on 1.4.2010 - Rs. 3 lakhs
Sale of Machinery on 1.4.2010 - Rs. 6 lakhs

Q. What will be the accounting implications as per Accounting Starndards ?
a. whether 3 lakhs will be credited to P&L ?
or
b. 2 lakhs will be credited to P&L and 1 lakh to Capital Reserve ?

What is Absorption Costing?

how will you deal with goodwill when,
1. New partner brings his share of goodwill in cash.
2. New partner does not bring his share of goodwill in cash.

what journal entries are made in the books of the Head office to incorporate the trial balance of an independent branch ?