a company invested in a gratuity fund scheme in lic and booked expenses now transfer investment company from LIC to india first and recieved invested amt from LIC . what is the treatment of received amt.

can anyine please clear the difference between ptec & ptrc

Head office sent a money to new branch for opening new bank a/c. What entry should made by the Branch in Branch Books and What entry should made by the HO in HO Books ?

we having partnership Firm, sign MOU of Non­Agriculture Land of Rs 2,00,00,000/­ on 19th August,2015. And Paid Amount of Rs 1,80,00,000/­ as
advance on 19th August,2015 and remaining will be paid at time of final sale deed. Apart from this e deduct TDS on 29th March, 2016 on 1,80,00,000
as 1% So TDS amount Rs. 180000 and interest of rs 21600 Total Tax Payment 2,01,600/­.
My Question
1) What are Accounting Entries required for these transaction.
2) As sale deed not exist only MOU made by Firm, so amount paid in advance will be shown in balance sheet as advance payment or what? As My
firm are in construction business so Land will be as stock or as capital?

what is the treatment for revenue expenses when commercial production has not commenced ? Do we have to capitalise it under preoperative exepenses under current assets or to be charged in profit or loss account ?

SIR
Can u please tell me the Rules to deduct ESI and EPF. AND WHAT SHOULD BE THE JOURNAL ENTRY REQUIRED TO BE PASSED IN TALLY ?

Employer contribution to epf and esi is expenditure for him or not.

please tell m i right or wrong..........ASSUMe SALARY Rs. 10000/-

SALARY A/C (expense) DR 10000
EMPLOYER ESI (expense) DR 367
EMPLOYER EPF (expense) DR 475
TO EMPLOYEE EPF PAYABLE (liability) 1200
TO EMPLOYEE ESI PAYABLE (liability) 475
TO EMPLOYER ESI PAYABLE (liability) 367
TO EMPLOYER EPF PAYABLE (liability) 475
TO SALARY PAYABLE A/C (liability) 8325

Dear All,

On 30th March 2016, MCA notified companies (Accounting standards) Amendment Rules 2016, where AS 10 and AS 6 has been replaced with revised AS 10. And this revised AS are applicable from date of notification (i.e., 30th March 2016). However, MCA received several representations for deferring the applicability date. NO final decision on deferment has been taken yet.

In light with the above, I am all confused as to whether Ind AS 16 will apply or this revised AS 10 for PPE's. Or their applicability will vary for Level I,II,III companies, as level I has to apply Ind AS from 1st April 2016 and level II from 1st April 2017 mandatorily.

Kindly enlighten.

Regards,
Monica

Dear Member,

We have receiving sample assets (Fixed) at free of cost from Head quarters.

Kindly let me know-at Ind As transition, what is the accounting treatment.

Can MAT credit be recognised in Balance sheet? If yes then what about DTA, shall it also be recognised along with MAT credit?

Please give reference also.... Thank you

Klein, Thompson Company’s CFO, has determined that the Motor Division has purchased switches for its motors from an outside supplier during the current year rather than buying them from the Switch Division. The Switch Division is operating at full capacity and demanded that the Motor division pay the price charged to outside customers rather than the actual full manufacturing costs as it has done in the past. The Motor Division refused to meet the price demanded by the Switch Division. The Switch Division contracted with an outside customer to sell its remaining switches and the Motor division was forced to purchase the switches from an outside supplier at an even higher price.

Klein is reviewing Thompson’s transfer pricing policy because she believes that sub-optimization has occurred. While Klein believes the Switch Division made the correct decision to maximize its divisional profit by not transferring the switches at actual full manufacturing cost, this decision was not necessarily in the best interest of Thompson.

Klein has requested that the corporate Accounting Department study alternative transfer pricing methods that would promote overall goal congruence, motivate divisional management performance, and optimize overall company performance. The three transfer pricing methods being considered are listed below. One of these methods will be selected, and will be applied uniformly across all divisions.

• Standard full manufacturing costs plus mark-up.

• Market selling price of the products being transferred.

• Costs incurred to the point of transfer plus opportunity cost per unit.

Another issue for Thompson Company is regarding its Division Z, Y, A and B, which is as follows:



Division Z of Thompson produces a component that it currently sells to outside customers for OMR 20 per unit. At its current level of production, which is 60% of capacity, Division Z’s fixed cost of producing this component is OMR 5 per unit and its variable cost is OMR 12 per unit. Division Y of Thompson Company would like to purchase this component from Division Z for OMR 10. Division Z has enough excess capacity to fill Division Y’s requirements. The managers of both divisions are compensated based upon reported profits. Recommend a price that will maximize total company profits and be most equitable to the managers of Division Y and Division Z?



Thompson Company has two sub divisions – A and B. Division B currently operates at 100% of its capacity and produces two products: Dango and Tango. Division B sells both products to outside customers for OMR 15 and OMR 30 per unit, respectively. At current production level the variable costs of Dangos are OMR 10 per unit, and fixed costs are OMR 3 per unit and for Tangos, the variable costs are OMR 16 per unit, and fixed costs are OMR 8 per unit.



Division A, which currently purchases Dangos from an outside supplier for OMR 16 per unit, would like to purchase 150 Dangos from Division B annually. However, if Division B increases the production of Dangos to meet the demand of Division A, it must stop producing Tangos entirely. Also, to meet stricter quality requirements of Division A, Division B must increase material cost by OMR 0.80 per Dango, but the marketing and transportation cost per Dango will be reduced by OMR 0.50 per unit. The total units of Tango produced and sold by Division B is 50 units per year.



Suggest the price range within which the transfer price for Dangos would satisfy both divisions i.e. Division A and Division B.



You are required to write a report to the Board of Directors of Thompson Company giving your suggestions and covering the following points:





· Introduction of Transfer Pricing, the discussion needs to be supported by relevant academic literature. (300)



· Transfer Pricing and Performance Evaluation Measures. (300)



· Detailed discussion on the different types of Transfer Pricing Methods used by Organizations. (700)