Dear All,

Please tell me, could we show negative salary in Trial balance. the company in which I am working, they have the corporate office in China for accounting work. in the trial balance they are showing negative balance under the head name *Offshore wages". is it possible.

thanks
Ravi Kant

Dear Experts,
A sole proprietor says that whenever he wants money in the business he will withdraw that much amount from SB a/c and will put into the business.
Since the business is carried in the status of sole proprietor while filing the return also the SB A/c is included in the Balance Sheet.
For instance the proprietor has to travel expenses, for that Rs.10000 is required means we have to pass the entry also in the SB A/c and in the books of the business. Please tell me whether the following journal entries are correct.
In his personal books:
Cash A/c Dr. 10000
To SB A/c 10000
(being the amount withdrawn for business purpose - travelling)

Investment - (business) A/c Dr. 10000
To cash A/c 10000
(being the amount put into the business)

In the books of the business:

Cash A/c Dr. 10000
To Current A/c 10000
(being the amount brought into the business to meet out the traveling exp.)

Bank (Current A/c) A/c Dr. 10000
To Cash A/c 10000
(being the amount deposited in the Current A/c) - This entry will come if all the exp. are incurred through bank only. Else directly exp. can be met thru cash itself.

Traveling Exp. A/c Dr. 9584
To Bank (Current A/c) A/c 9584
(being the exp. incurred as per the bill)

With regards,
Rajesh.

Please someone explain me this DTA/DTL adjustment through journal entries , & whats the logic behind this

I have recently finshed auditing a company now my boss has asked to finalise it and prepare the return so what are the finalisation entries that are required to be put in tally before arriving at taxable income of the company??

give the accounting treatment separatly.

a)Services rendered to Main contractor by sub contractor


b)Services provided by Main contractor to sub contractor

c) The normal account balance of sub contractor with main contractor debit or credit?

I want to Know for Income tax purpose that if there is required to show house property & Investment otherthan eligible for deduction in b/s ?
i.e
1. if i purchase a house property would i show its purchase price of land & construciton cost in balance sheet in fixed assests ?
2. if i invested in K.V.P, bank F.D, Recurring Accounts, Sahara india Investments, daily investment or any other investments which are not eligible for deduction u/s 80C ?

exlpain if you have any it rules information
thanks in advance

Hi,

Is it right that TDS limit on contarct now 30,000 on a bill and 75,000 in finacial year.

TDS limit on rent is 1,80,000 from 1st July 2010

Thanks
Yogesh

Dear all,

Advertisement expense of Rs. 4,26,000 have been incurred by a Company during the financial year.
State the accounting and tax treatment for this.
Its very urgent.

Thanking You.

Dear Experts,

Audit fees paid before starting the business and after incorporation of company, is it a pre-operative expense?

What will be treatment.

Dear Experts,
If A firm and B firm are sister concerns.
In the books of A firm Rs.1,00,000 is receivable from B firm. In the books of B firm 40000 is payable to A firm. The difference in these balances exists 4 or 5 years. The accountant of the B firm claims that it has been settled in cash but not been accounted in the books of B firm.
Which is the best way to sort out of this problem. Can i ask the client to pass the following entry.
A Firm A/c Dr.60000
To P&L A/c 60000
(Being the liability no longer required)
Is this the way it has to be treated?
Some people suggests to pass the following entry.
A Firm A/c Dr. 60000
To Partners Current A/c 60000
(current a/c shall be credited in the profit sharing ratio)

Which of these method is legally correct?
If any scrutiny comes in the later date...the ITO might object for the 2nd type of entry.

Pls. guide me which path is right and which one to be followed.

With regards,
Rajesh.