Accounts QnA - Page No 1571

A company purchased an Machine in Mar 09 & also put to use it in Mar 09. Accordingly it charged, dep over the asset under both IT Act & Cos Act but in May 09, some fault found in Machine and is returned back to vendor. Now, how shd company pass entries for Asset Return and dep over it for 2008-09 & as well as for 2009-10 under both Cos Act & IT Act?

varun gupta

16 June 2009 at 11:40

Dep on Asset sold

If an individual Asset out of a blok is sold during the year, how is the dep calculated over that asset for the days used during that year under Cos Act & Income tax Act?

varun gupta

16 June 2009 at 09:36

Dep on Assets

A company purchased some Machinery and it is received in Factory on 1st Mar 09. Bill from Vendor is dated 25th Feb 09. After all installations and work, the Machinery gets ready to be used on 15th Apr 09 whereas it is actually put to use on 1st May 09.
a) Now, When the Machinery be taken into books?
b) Will dep be charged for 2008-09 either in Cos Act or Income Tax Act?
c) What will be date from which dep should be calculated?
d) Any other statuatory requirement if applies?

varun gupta

16 June 2009 at 09:30

Dep on Asset costing less than 5000

Any asset costing for less than 5000 should be depriciated @ 100%. So, is it must to first capitalize and then provide dep or can the purchase amt be directed charged to P & L A/c? Will this rule apply both for Income tax & Companies Act or what?

Chirag Chordia

15 June 2009 at 12:43

Closing Stock

why we do not record closing stock in the Trial Balance???

Manjay Jha

15 June 2009 at 09:57

Accounting Standard

My company's retirement benefits funds are handled by LIC for Gratuity and Superannuation. Based on tle actuaral valuation, premiums are charegd by LIC every Year. They provide us actuary ciertificate in this manner and the bases of calculating premium.

My question is , since LIC does autural valuation every eayr, whether, company must do actural valuation on its own for compliance of AS 15