Our client is a trust and it has shown an amount of Rs. 20 lakhs as advance given for a property. This property is a disputed one and so the trust could not occupy it. Thus the trust had not capitalised the asset.


Now the trust sold the property and received another property in exchange which is worth 1.5 crores (stamp duty value)So now how should the accounting treatment be done? At what value should the new property be shown and why?

I have Purchase Residential Land for Rs.250000/- and my Construction cost is for Rs.7,50,000/- but I have only Land Purchase Papers. So How Can I saw my total cost of Rs.10,00,000/- my Residential house in my balance.

Kindly give me the right suggesstion
What to do ?

What to do about cost inflaxtion index benefit ?

Dear Experts,
Require ur immediate reply...Very urgent Sir!!!
For a first year incorporated company we are finalizing the audit.
For AS - 22 calculations i have done the following workings. Please tell me whether i am correct or not. Because of this i have not yet said to my senior that the audit has been finalized.

Closing wdv balance of Fixed Assets as per Companies Act - 60,00,000
Less: Closing wdv balance of Fixed Assets as per Income Tax Act - 50,00,000
Difference in balances = 10,00,000
Note:
(1)This is due to difference in depreciation amount. In Income Tax act we are claiming more depreciation amount than companies act. Therefore Tax Profit is less than Book Profit, consequently we are paying less tax now which we have to pay at a latter point of time, thats why we have to create DEFERRED TAX LIABILITY.
(2)It is assumed that there is no amount disallowed u/s 43B.



Deferred Tax Liability to be created - 10 lakhs * 30% (no surcharge or cess since less than one crore income) = 3 lakhs.

First Entry - Booking the expense and creating liability:

DTL* (P&L) A/c Dr. 3 lakhs
To DTL (B/s) A/c 3 lakhs
(Being the amount of Deferred Tax liability which we have to pay in later years for which currently booked as expense and corressponding credit (i.e. liability) is being created)

* Instead of DTL (P&L) we may also term it as Tax Expense

Second Entry - For transferring the expense into P&L a/c:

P&L A/c Dr. 3 lakhs
To DTL (P&L) A/c 3lakhs
(being the amount of Deferred Tax transferred to P&L account for the year ended 31.3.2010)

Please inform me whether i am correct or not in this regard.

With regards,
Rajesh.

We are in carpet indusrty, our customer wants repair of carpets as & when they required, we send our represnative to do the work there exp includes (traveling, lodging, fooding etc)we charge from party lumpsum amount depends upon customer 2 customer through debit note. What is the correct way to present this situation in books.Presently we are showing expenses net of receipts.

hii i have some query about the treatment of goods destroyed due to fire
goods destroyed 40lac
sale of good destroyed at lot rate 80000rs
insurance claim rec. 16lac
then tell me the treament of this case that how we show these trans in trading&p\l ¬es to a\cs
pls reply fastly

What are the rules for transfering profits to General Reserves other than the mandatory transfer in case of Dividends.

For all purposes, is the balance of Profit & Loss A/c in Shareholders Equity to be treated on par with General Reserves?

dear all aspirants

kindly suggest on GIT matters.

Thanks

One of my client has given Performance Bank Gurantee of Rs.115000/- to supplier in year 2000-01 taken from Bank against which the bank has taken 10% margin in the form of FDR i.e. Rs.11500/- Now in books still is standing.I asked the reason from my client then he explained to me that the Original Bank gurantee was not returned till date from supplier as the same was lost from them till the bank is not ready to realise the said FDR. now what to do in books to remove this entry after keeping in mind accounting concept & also from taxation point of view.

Please reply urgently & thanks in advance.

Kindly let me know under following two conditions whether dedcution of TDS applicable or no tax is deductible under both the conditions
1. Sweets purchased in bulk for distribution to employees in ordinary pack
2. Sweets purchased in bulk for distribution to employees in a pack, with advertisement message of the company

thanks

My Friend Started a chit fund Can anyone say
What Should be the Accounting Policy ?
What should be the Revenue Recongnition ?

Chit Fund take 3 year to Complete ?