During the FY 2007-08, M/s XYZ Pvt. Ltd. received Rs. 300 lacs from a client after deduction of TDS against a Proforma Invoice. M/s XYZ delivered part services and booked the whole amount as Income of the year 2007-08. The auditors were informed that the work is done and so the full amount is taken to Income. However, during 2008-09, the client of XYZ gives an official letter demanding back full amount of advance i.e., Rs. 300 Lacs. M/s XYZ has no choice but to return the money. Can anyone tell the accounting treatment to be done for reversal of Income in the books of 2008-09. And what happens to the Income Tax return ? Is it to be revised ?

Hi all,

Kindly resolve the following query:

An educational institute has decided to procure the following items:

1. Drum Set
2. Amplifier
3. Guiter etc.

The musical items indicated above are required for students amusement, entertainment or say for development of the students. Now, my question is-
Are these assets or not? If asset then why? and If not then also for what reasons? Kindly specify the journal entry to be passed for purchase of such items.

Thanks in advance.

Hi sir/Madam,

what are the conditions In Accounts and Income Tax to charge the Depreciation On Fixed Assets and what is the treatment of charging the Depreciation in both Accounts and income tax?

Actually i am little confused regarding a specific issue on depreciation
If a Building is a part of plant and machinery i mean base bulding without which the machinery cannot operate than should depreciation should be charged At the rate of plant and machinery or building?

AS-2 Valuation of inventory states that while determining the cost of the inventory trade discount, rebates, etc. is deducted to arrive at the cost. However, cash discount is not included. It states that cash discount is to be shown as an income in the P&L statement. Why is this so?

Please, Help me, We are dealing with Indian Co. he give me Payment in US Dollars. He send me US$ 12000 @ 49.54 and bank give us credit US$11995 @ 48.94 and bank not show US$ 5 dollar in our statement. How should we pass this entry in our Books.

Thanks

When we should start charging depreciation on newly purchased assests?

plz answer with reason.

I am working in Export house. I want to know that if we books export bill in April 2008 and payment received in May 2009 then where the applicable Exchange rate difference in F.Y. 2008-09 or 2009-10. and Which rate applied in the entry, please help me also give the example of entry.

I am working in Export house. I want to know that if we books export bill in April 2008 and payment received in May 2009 then where the applicable Exchange rate difference in F.Y. 2008-09 or 2009-10. also
Which rate on 31 March enter and then what is the rate on payment received we calculate, please help me also give the example of entry.

Provision was made against doubtful debtors. Subsequently payment was received from debtors. As such provision earlier made has to be written bakc. Whether such write back can be shown under the head income or not. What should be the correct way of presentation.