Hi,

I want to know the accounting treatment for the following issue:


A manufacturer (company) has outsourced work to a job worker. The job worker has purchased a machinery and shown in the books as a fixed asset and claims depreciation. The manufacturer reimburses the cost of the machinery incurred by the job worker in Equal Monthly Installments. Further the manufacturer doesn't want this amount to be shown as a loan installment. Now should the EMIs be reducing the value of the fixed asset in the books of the job worker? But then at some point the value of the Fixed Asset will turn negative, since the asset is being depreciated. What should be the Accounting treatment for this?

Thanks

Can you please tell me what is a TRUST DEED?

how to calculate the useful full life of the assets for the purpose of sechulde 2 of the new companies act 2013 in case of new incorporated company

difference between debt and equity?
difference between liability and debt?
what is debt equity ratio
what is current ratio
what is quick ratio acid test ratio
difference between reserve and provision
what is deferred revenue
what is deferred expenses
difference between deferral and accrual
bad debts and provision for bad debts
what is depreciation and its methods
what are month end closing entries/activities
complete set of financial statements and objectives of financial statements
deferred tax liability and asset
difference between deferred tax asset and deferred tax liability
net realisable value and fair value
what are trade discount and cash discount

plz tell me the book for comparative study of as,indas,ifrs

I have purchased a new AC and have sold old AC in cash and also paid installation charges Rs. 1000/- in cash so how to account this?
should i account the purchase and sale entry separately? also installation charges will be clubbed with AC amount

X sold a residential house property and invested 50percent in purchase of land and enters into joint venture agreementg for construction of 8 flats with builder and gets 4flats for him and in the subsequent year sold 2flats what will be the LTCG and exemption u/s 54

hotel are start owner purchase like spoons,knife and dishes. he capitalised them. after 2 yrs. he purchase like 1dozen spoon then what effect they capitalised or not. pls give reason for any treatment. i waiting' for suggestion.

plz share the file of comp.act latest with calculation WDV and SLM with change which occurred.

if any business organization is purchasing as well selling the goods to same party i.e. same party may be debtor as well as creditor, as the case may be. so the question is that whether there will be two different accounts for purchase and sale separately or only one account in which all the transactions relating purchase and sale both will be recorded? give appropriate reason supported by applicable Accounting standard or guidance note or any other law if exist.