what will be the accounting effect in this given case:

My client bought a Asset worth Rs. 82 lakh in FY 2007-08 & capitalise the Rs 82 Lakh.In FY he paid Rs.40 lakh & remaining Rs. 42 Lakh is carried as Creditors in Balance Sheet.
Now in FY the creditor is ready to accept Rs.32 Lakh ( or Rs.10 lakh Less).
How the accounting woul be done.
Should i show the asset At Rs 72 lakh and restate the accounts or should i show Rs. 10 lakh as other income in FY 2008-09 and pay tax on increased income.

Please reply with some case laws and Judgements on the facts

Sir,

Pls tell me what is the difference between contractor & sub contractor.

HUF has acquired a plot of land. Memorandum of Understaing is made between HUF & its Karta whereby HUF has approached Karta for construction of residential building on the said plot.

Terms & conditions of MOU are as follows ;

1.The expenses related to the Development of said Property shall be totally borne by the Karta.
2.Karta shall have right to sell the flats to the proposed buyers at a price to be decided in consultation with the HUF.
3.HUF in return shall shall part with 15% profit on sale proceeds of each flat as Development right to Karta
4.Karta has assigned all their rights, title or interest in the said plot.
5.Karta shall cease to have any matter of any rights, title or interest in the said plot.

Please suggest accounting in case of both i.e.HUF & Karta.

dear frinds,

please help me on this matter ,if a partnersip firms have a book profit for rs 6,05,000/- after depricition ,than how to calculate salary of partners.please advice me its urgent.

What is the accounting treatment for repairs due to an accident on vehicle used for the purpose of company and subsequently some amount recovered from insurance co.

i was doing audit of pharma. co. which is sole proprietor and here i found that the proprietor had purchase 4 motor vehicles which is maruti wagonr, toyota innova, honda accord and vehicles. all these assets use for business purpose.

now i want to know is all these vehicles allowable to a single proprietor for depreciation.

Dear Sir,

Can any one please tell me what are the amendment has been made in AS 11,from which year it is applicable and what accounting entries is to be incorporated in the books of accounts as per the amendment

Regards

Ravi Konda

cost of key board or other accessery of computer purchased will be capitalised or charged in P\L Account tell me in full detail

A fertilizer manufacturing company.
Addition to factory building up to 31.03.2007 is Rs.435000.00. however the addition is not yet completed as on this date. is it capital WIP to be shown on asset side or does it have any other treatment.. Plz explain...

FRIENDS,

MY QUERY IS GIVEN AS BELOW:

A COMPANY RAISED IN JUNE 2007 USD 50 MILLION THROUGH FCCB REPAYABLE ON OR BEFORE JUNE 2012 BY-

I) ISSUE OF EQUITY SHARES OF RS 10 EACH @ RS. 1,000, OR

II) PAYMENT OF CASH AT A PREMIUM OF 45%.

IN OCT 2008 COMPANY'S SHARE WAS TRADING AT RS. 325 EACH IN BSE.

COMPANY DECIDES TO REDEEM FCCB WORTH USD 25 MILLION BY ISSUE OF EQUITY SHARES AS IT'S FACING LIQUIDITY CRUNCH.

TO GIVE EFFECT TO ABOVE SCHEME COMPANY BUY BACK 12,50,000 SHARES @ RS. 350 EACH.
AFTER BUY BACK IT REDEEMS FCCB OF USD 25 MILLION BY ISSUING THE 25,000 SHARES @ RS. 1000 EACH TO FCCB HOLDERS.

NOW WHAT WILL BE THE ENTRIES IN THE BOOKS FOR THE BUY BACK OF SHARES & REDEMPTION OF FCCB. ?

PLEASE ANSWER IN ELABORATIVE MANNER.