Can anyone t'emme what does Swap Contract, Forward Contract, Future Contract & Option Contract mean in detail plz!! I actually came across these terms while working out Cash Flow Statements..

sir i m on audit of IOCL, they are capitalising insurance spares.As we know insurance spares needs to be written off during the life of asset to which it belongs,this means dep will be charged retrospectively, but i have a problem that what should be done with the depreciation which relates to previous years.will it be treated as a prior period expense in the P&L?

what is capital reserve ?what is its use?

how to convert data of tally 7.2 to tally 9.0

When do we need to make provision for gratuity in the books of accounts ?
- when the employee completes 5 yrs of service, then we need to provide in books of accounts OR
- when the employee joins the co & we start paying him mthly salary

Pl provide clarity on same ASAP
thanks in anticipation

Sir, in case of goodwill, where the book value is less than the face value, ie30000 is the book value and 50000 is the revalued value, and there are k,l, and m as partners sharing 5:3:2 p/l, how is it accounted where the goodwill is to be written off?

On the retirement of L, N is admitted as new partner.

Instead of writing off 20000 among old partners, how is it that they have illustrated by writing off 50000 itself among k,m, and n?

similarly they have illustrated another sum having book value 40000 and full value 56800, and having A, B, C as partners, and A retires and 56800 is shared between B and C in their ratio. can you please explain me the concept behind this?

The concern i work is into trading of goods which are partly sent on consignment to different cities in india & partly local sales.

We are using tally 9. I want to learn journal entries of consignment sales using tally.

I request the members of this club to provide me with journal entries using tally along with ledger creation ( groups under which accounts like consignmen a/cs to be taken).

I also want the sales tax treatment of consignment sales.

I referred to b.s.raman & shukla & grewal text books but couldn't do the entries in Tally.

please kindly provide me a solution.

Are the companies forced to adopt this standard or is it optional ?

I mean if a particular borrowing cost qualify to be capitalized, can the company charge it to P&L A/c (thereby reducing the profit)? Or is it forced to capitalize it compulsorily (profit will increase then)?

Historical cost of asset Rs 100
Written down value Rs 75

Sold the assets at Rs 150. That means profit of 75 Rs.

I heard that out of this 75 Rs profit, 25 Rs will be credited to P&L A/c and 50 Rs will be transferred to capital reserve. Is this treatment correct?

If yes, under which AS/ASI can I read about this treatment method?

A fixed asset with historical cost of Rs 150 & WDV of Rs 100 have been revalued Rs 150 and accordingly revaluation reserve of Rs 50 has been created.

Lets assume, the asset is subsequently sold for
Situation A for Rs 175
Situation B for Rs 120

What will the accounting entry and finally where will be balance in revaluation reserve be transfered?