What is the Debit Memo and Credit Memo?

Thanks in advance

fazle_sap_fi@yahoo.in

If Asset is purchased by a manufaturing Unit and is used in the Office and not for production, then can VAT Credit be availed on that?

Eg. X, a manufacturing unit, purchased Furniture and is put to use in the office. Then VAT paid to be capitalised or input credit can be availed?

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Thanks in advance:)

1.why dividend is exceptional item under As-4.as on balance sheet date it is not known that whether comapny will provde for dividend or not even dividend is provided in that year p&l only.why bcoz its a non adjuestig item as per the defination of As-4.

Q. X sends out goods costing 1,00,000 to Y at cost + 25%. Consignor's expenses Rs. 2,000. 3/5th of the goods were sold by consginee at 85000. Commission 2% on sales + 20% of gross sales less all commission exceeds invoice value. Amount of commission will be ?

The expenditure has been incurred on website development of a Consultancy firm. The amount is less than Rs.50,000. How it would be treated. Is the site an asset? I think that the website is not an asset and the expenditure incurred on its development should be treated as of revenue nature.

plse help me out by solving this case study.

Case Study
Maruti Auto Finance Ltd.
The company is seeking refinance through securitisation of its 10 different auto lease deals.
Lease deal No. Original Principal Amount (Rs.) Type Implicit Interest Rate Maturity
( Months) Expired life
(Month)
2007/1 1700000 EMI 15% 70 20
2007/2 2500000 EMI 15.50% 70 20
2007/3 1250000 EMI 14.75% 70 20
2007/4 1280000 EMI 14.85% 70 20
2007/5 1750000 EMI 15.10% 70 20
2008/1 2212000 EMI 14.90% 60 10
2008/2 2000000 EMI 13.90% 60 10
2008/3 2500000 EMI 14.20% 60 10
2008/4 2000000 EMI 14.30% 60 10
2008/5 2000000 EMI 14.10% 60 10

A merchant banker has given the following proposals:
1. Issue a single pool with LTV 75% at 12.0 % p.a. pass through rate and service charge of 1% p.a. inclusive credit rating, credit guarantee.
2. Issue PO and IO series separately. The PO series is expected to have LTV 85% with pass through rate of 11.75% p.a and IO series is expected to have LTV of 70% with pass through rate of 12.75% p.a. Service charge will be same as mentioned in proposal (1).
3. A third alternative is to issue three series –
i. Series 1 comprising of 50% of PO and 5% of IO at pass through rate of11.9% p.a;
ii. Series 2 comprising of 30% PO and 20% IO at pass through rate of 12.15% p.a.
iii. Series 3 comprising of 5% PO and 45% IO at pass through rate of 12.5% p.a. Service charge will be same as mentioned in proposal (1).

Prepare report showing what proposal the company should accept. The company is pondering over the reinvestment rate with 2% spread. What should be the acceptable level of reinvestment rate. Does it match with the existing lease rate? The company expects a rise in the lending rate in the range of 20 – 30 bps.

Three options – exercise on buying an asset (Blackberry costing Rs.22000/- now) using three approaches.

1st option is : -

a) Rs.22000 cash down now
b) our saving Rs.500 every month
c) Our investment Rs.500 every month for 36 months
d) We will get a return at the end of 36 months based on our expected monthly rate of return determined by us.
= P + R where P is Principal & R is our expected monthly rate compounded for 36 months

2nd option is : -

a) We pay down payment Rs.10000
b) We pay EMI Rs.500 for 36 months
c) We invest Rs.12000 @ our expected rate of return for 3 years
d) We get P1 + R1 compounded for 3 years @ our yearly expected rate

3rd option is : -

a) We pay down payment Rs.10000
b) We pay EMI Rs.500 for 36 months
c) We invest Rs.12000 for 3 years with the dealer who is selling the asset to us
d) We get Rs.22000 from the dealer at the end of 3 years



Calculate: - Monthly expected rate

pls i need a finacial statement format with details &provisions

My company has recevied a remittance. I need to know which documents i have to submit to bank for geting this FIRC?

Dear experts,

Kindly let me advise that whether 1st Insurance could be capitalised. If yes, what is the logic behind this since subsequent insurance payment would be charged to Profit & Loss Account?

Thanks & Regards