Hi

Our Company has Rented a Factory Building, and it has been modified and renovated to suit our production activity. Company has debited the expense to repairs and Maintanance saying building being the asset is not owned by the company. thus expenses are revenue in nature

I am of opinion that the expense should be capitalised as benefit from same is not derived just for one year but till the day we use the building thus account as fixed asset and depreciation should be claimed under rate prescribed for building.

Please confirm if the expense is a Revenue or Capital

and method of accounting recommended

What is meant by concept deferred entries? Please explain with an example

Dear members,
I want to increase my cash credit facility from 2.5 lakh to 5 lakh in to sbbj bank ,, so any one can suggest me what is ratio's of CMA report or projected Balance sheet...

sir
suppose a client is sub dealer in auto industry he buys bikes from authorized dealer and sells on commission basis.
now facts are
1-Bill of purchase those bikes from company is in name of main dealer.
2-Sub dealer only receives commission for selling.
3-But while selling he has to also give sale bill to customer
4-so what will be correct accounting entries in relation to buy and sell of bikes in the
books of sub dealer

Dear sir
Income tax paid by the propertior can be dedit under profit & loss a/c ?

Whether the same principle apply to companys or Partnership firms ?

FOR PROPRIETORY CONCERN F.Y.2011-12,

WHAT IS DEPRECIATION RATE FOR WINDMILL REGISTER UNDER GBI SCHEME? AND CAN I CLAIM ADDITIONAL DEPREICATION ON WINDMILL UNDER GBI SCHEME ?

KINDLY ASSIT ME AND REPLY BY MAIL ALSO.

THANKS

Here I am explaining our transaction.

1. We will raise our P.O. to Agent / Dealer (ABC)

2. Agent / Dealer (ABC) will raise P.O. to Manufacturer / Mill (XYZ)

3. Manufacturer / Mill will dispatch the materials to us along with Excise Invoice in our name as per our P.O. Specification Mentioning that " PAYMENT TO BE MADE BY " M/s Agent / Dealer (ABC)

Our Doubts are

1. To whom we have to make payment? to Manufacturer / Mill (ZYZ) or to Agent / Dealer (ABC)

2. If we paid to Agent / Dealer (ABC) is there any problem ? from any of the department ( Income Tax, or Sales Tax (VAT) or any) or from manufacturer / mill (XYZ)

How we have to account it in our books of accounts ?

1. Purchase from manufacturer's name Since Bill will be in his name (Ledger will be in manufacturer;s Name)

2. While making payment shall we create a ledger in the name of Agent / Dealer or we should show payment entry to Manufacturer by narrating that paid to Agent (ABC) on behalf of Manufacturer (XYZ)

While preparing firm's balance sheet, in fixed assets for depreciation which rate should be used?
Rate as per company law or tax law.
Please explain.

Is it compulsory the amount generated in the columns of Maximum Permissible Bank finance in the CMA format should be same amount for each year?.ie. actuals 2 years and projections are same amount. If one party require 100 lakhs loan, then after filling the CMA, the Maximum Permissible Bank finance is 100 , 100, 100, 100. every year. Pls. clarrify.

Raju Jaihind Cochin

DEAR ALL,
WE HAD PURCHASED ONE MACHINE FROM ITALY IN OCTOBER 2011. SUPPLIER FROM ITALY HAD SUPPLIED MACHINE 3 MONTH LATE THAN HIS COMMITED DATE. THERE WAS A LATE DELIVERY CLAUSE IN OUR PURCHASE ORDER. WE HAD INVOKED THAT OPTION OF LATE DELIVERY CLAUSE AND AGAINST WHICH SUPPLIER HAD GIVEN US CREDIT NOTE OF 2.5% OF TOTAL AMOUNT. HE HAS GIVEN THAT CREDIT NOTE IN JULY 2012.

WE HAD CAPITALISED MACHINE IN FINANCIAL YEAR 2011-12 AT FULL COST. NOW OUR QUESTION IS THAT WHETHER THIS CREDIT NOTE RECEIVED FROM SUPPLIER SHOULD BE CONSIDERED IN CAPITALISED VALUE OF ASSET. SHOULD WE REDUCE OUR CAPITALISED VALUE OF ASSET BY THAT CREDIT NOTE VALUE,OR SOME OTHER TREATEMENT SHOULD BE GIVEN TO THIS CREDIT NOTE IN ACCOUNTS.

REGARDS,

GAURAV G BADWE.