A proprietor purchased a car by Paying rs.100,000 cash from His proprietorship firm as down payment . but availed of loan of Rs.300,000 from ICICI bank and paying it through his personal saving account. How it would be entered in books of accounts.

Asset Car A/c Dr.
To Cash A/c
To ...........Dr.

what should be dr along with cash because loan payment will be done through his personal saving account we can not show as loan here.

And what would be interest entry for the interest he paid during year on loan.

Please clarify in detail.

Dear All,
This is the case of exporter- One of our client record Export sales after received Bill of Leading (i.e. first dispatched the good from office premises and after loading on ship, B.L. will received and sales will booked.) this process of booking of sales has been followed whole of the year.
In the march 2013, some of goods purchased and dispatched from office premises but B.L received in April. Whether sales booked on March or April?

Please suggest about the accounting and Taxation issues.

I have encountered a situation for which i require solution in respect of Deferred Tax.

For eg facts of the case are as follows :

Suppose the data given below is for FY 12-13 :

Particulars- Accounts
Loss Rs.(250,000)
Less: Depreciation as per Companies Act Rs. 170,000

Net Loss Rs.(420,000)


Particulars- I T
Loss Rs.(420,000)
Less: Depreciation as per I. Tax Act Rs. 90,000
Less: Preliminary Exp U/s 35D of I. Tax Act Rs. 10,000
Add: Depreciation as per Companies Act Rs. 170,000
Net Loss Rs.(350,000)

For the situation given above,

1)Do we have to calculate deferred tax on only UNABSORBED BUSINESS LOSS,

or

2)Deferred Tax is calculated on all the following items :
a)Depreciation
b)Preliminary Exp U/s 35D
c)Unabsorbed Business Loss

Which of th above option should be considered for deferred tax calculation

Yours early reply will be highly appreciated.

I am not clear regarding the revenue recognition with respect to construction contracts, especially the case where expected costs exceeds expected revenue!
I have come to known that such a situation demands the expected loss to be treated as an expense.
But I have come across a situation where, % of completion is applied on such expected loss, and is stated that such portion is to be recognized in the P&L.. and the balance shall be provided for as provision-- Isn't this according to CONSTRUCTION CONTRACTS??

In short, can a trade-off be emerged between CONSTRUCTION CONTRACTS and AS-7??
Or do they both take different stands??

I have searched for illustrations on similar cases, but I couldn't figure out any!

Kindly clarify my concept,
Regards,
Hari krishnan.

I am not clear regarding the revenue recognition with respect to construction contracts, especially the case where expected costs exceeds expected revenue!
I have come to known that such a situation demands the expected loss to be treated as an expense.
But I have come across a situation where, % of completion is applied on such expected loss, and is stated that such portion is to be recognized in the P&L.. and the balance shall be provided for as provision-- Isn't this according to CONSTRUCTION CONTRACTS??
I have searched for illustrations on similar cases, but I couldn't figure out any!

Kindly clarify my concept,
Regards,
Hari krishnan.

What is capitalization pls explain.

what is capitalization,how it is done.

AS 16 provides that borrowing costs that are directly attributable to the ACQUISITION, CONSTRUCTION, OR PRODUCTION of a qualifying asset should be capitalized as part of cost of such asset.

Now, borrowing cost for renovation of an asset-will it be capitalized?
To be specific, such a renovation of an asset is neither an acquisition, construction or production, can it be a qualifying asset ??

Dear Experts,

Should Fees paid to Statutory auditor for the following be included in 'Taxation matters' under Schedule VI disclosure for Auditor remuneration:
a) Transfer pricing Form 3CEB
b) Form 15CB - s.195 certification


Thanks & Regards,
Rajesh

WE RECEIVED INVOICE OF ADVERTISMENT SERVICES IN NEWS PAPER, WHAT RATE OF TDS IN DEDUCT ?, PLEASE ADVISE