what is the definition of scrap???????

how should we determine that any material lying in the godown at the end of the year is scrap or closing stock???

suppose that i m a dealer in cloth, i purchase 100mm cloth out of which i use 95mm for production and i want to consider the other 5mm as scrap but the income tax officer says that it should be considered as closing stock of raw material

so what should i consider the 5 mm cloth (scrap or closing stock of raw material)????

can we capitalize the life time tax on the purchase of car

I want to know the answer for the following question

Suppose 1 machinery amounting to rs. 100000 has been purchased on 01.01.2002 and the W.D.V of the machinery on 31.03.2008 is Rs. 40000 and now this machinery is being sold for Rs. 150000.

Someone says that Rs. 50000 is a capital profit and Rs. 60000 is revenue profit whereas sopmeone contends that Rs. 110000 is a revenue profit . the clarification given by them is that nothing has beemn specified in As-10 that there is capital profit above the historical cost . however one of the expert said that it has also been held by the institute in the journal of june 2000.(copy of journal is not available to me so i am not able to verify the same)

Please reply the same from view points of accounts i.e treatment to be done in the books and dont explain me the GYAN of income tax act and also i request u to give proper backing to ur answer.

I want to know the answer for the following question

Suppose 1 machinery amounting to rs. 100000 has been purchased on 01.01.2002 and the W.D.V of the machinery on 31.03.2008 is Rs. 40000 and now this machinery is being sold for Rs. 150000.

Someone says that Rs. 50000 is a capital profit and Rs. 60000 is revenue profit whereas sopmeone contends that Rs. 110000 is a revenue profit . the clarification given by them is that nothing has beemn specified in As-10 that there is capital profit above the historical cost . however one of the expert said that it has also been held by the institute in the journal of june 2000.(copy of journal is not available to me so i am not able to verify the same)

Please reply the same from view points of accounts i.e treatment to be done in the books and dont explain me the GYAN of income tax act and also i request u to give proper backing to ur answer.

i got my leave from my firm & i want to start studying accounts..
i want to know how can i proceed to start studying accounts..
i m really confused about it..

As per INCOMETAX tax liability is Rs.154855/-. As Per Provision of MAT tax Calulated is Rs.345945/-.

So We have to Pay as per MAT Rs.354855/-. So MAT credit available is Rs.191090/-(345945-1548550)in next year.
at present DTL Balance is Rs.548458/- before considering MAT.

Is any way MAT affect the DTL?

Thanks.

one car is sold and there is no other vehicle in this block.

As per Income Tax there is Capital Gain Of Rs. 185444/-.
As per Books of Accounts there is Loss on Sale of Rs.145788/-.

Deffered Tax Liability regarding Total Fixed Assets already exist in the books
of Rs.895485/-.

Current year Depreciation as per A/C is 2500255/- while as per IT is 1955235/-.

How the Gain /Loss on Sale is treated in Deferred Taxation?

Thanks.

1st year:
Profit as per books:Rs.9715
depreciation as per books:72740
dep as per IT act:294324
diff is 221584
deferred tax liability @30.99% - 68669
2nd year:
DTL opening balance;68669
profit as per book:10054
dep as per books:72740
dep as per IT act:254355
diff:181615
DTL@30.99% 56282/-
DTL Closing balance- 124951

we will generally debit p/l a/c &credit DTL a/c in the year of OTD ,from which year we will write back the DTL &how much amount?i.e., what is the year of RTD?

I want to know the answer for the following question

Suppose 1 machinery amounting to rs. 100000 has been purchased on 01.01.2002 and the W.D.V of the machinery on 31.03.2008 is Rs. 40000 and now this machinery is being sold for Rs. 150000.

Someone says that Rs. 50000 is a capital profit and Rs. 60000 is revenue profit whereas sopmeone contends that Rs. 110000 is a revenue profit . the clarification given by them is that nothing has beemn specified in As-10 that there is capital profit above the historical cost . however one of the expert said that it has also been held by the institute in the journal of june 2000.(copy of journal is not available to me so i am not able to verify the same)

A job advertisment for the post of CFO says he should manage DSO( Days Payables Outstanding ).

My question is:

What does managing DSO involve? Is it any different from looking after the payables of the company?

Thanks.