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.

In investment accounts(format accounts) When the value of investments is less than market value we record the difference in fair value change a/c[DIMINUTION OF INVESTMENTS]. What if the value of investments is greater than market value, where to record for the difference?

Dear Sir,
I have a question. Sir in a pvt ltd co. there are 105 employees. For gratuity

1.How to calculate the amt of provision?

2.Amount calculated by valuer as 836282/- for the year ended 31.03.2010

3.Co. made the payment of rs.500000/- in this year.

4. On 31.03.2010 what should be the entry required to be passed?

Pls suggest us as soon as possible.
thanks in advance.

Dear Experts,Very Urgent Sir...Need clarification on the following points.
1)Labour Welfare Expenses (Tiffen expenses incurred) for the workers
2)Provident Fund
3)ESI
4)Factory Maintenance
5)Machinery Maintenance
Can the above expenses be treated as Direct Expenses in Tally?
As far as i know all the above can be treated only as Indirect Expenses... Pls. guide me whether i am correct or not?
With regards,
Rajesh.

wht should be accounting for distributing free samples of books.

hw should we treat it
plz explain

Dear Experts,
Very Urgent Sir...
If an individual does business as a sole proprietor while preparing balance sheet apart from his business assets whether assets used for his personal purposes such as House Property, Investments made in LIC,NSC,Shares etc should also be included?
If Yes while showing these in the assets side under what head can i show in the liabilities side.
Thanks for your guidance.
With regards,
Rajesh.

Company engaged in Transmission of Electricity purchases land only for errecting Sub-stations. Land is never purchased for reasale or as investment.

Untill the completion of errection of Sub-station the land is treated as part of Work-in-process and after that whole asstes i.e. Land, Building, Plant etc. are transferred to respective assets groups.

Whether accounting treatment of Land is correct in terms of Accounting Standards ?

I need bill discounting concept with example.

Please any body clarify my doubt regarding bill discounting?

We got one order from party & the payment terms is 90% against Bill of discounting.

Kindly clarify. Very urgent.

advance thanks

regards

Prasad

IF IN A PARTNERSHIP FIRM OR PROPROPRIETORSHIP FIRM IF THERE IS SALE OF FIXED ASSETS ON 12/02/2010 I. E. AFTER 180 DAYS


THEN FOR WHICH PERIOD DEPRECIATION SHOULD BE CLAIMED

FOR WHOLE YEAR

OR HALF YEAR