dear all
what are the best ratios(like current ratio,Np ratio) for Term Loan, CC Loan and other loans

and

how much stock should be shown in estimated and projected statements for loan purpose

provision for depreciation will be shown under which head as per revised schedule vi?

plz tell me the treatment of salary in proprietorship firm

Sir,
We have taken Bank Guarantee of Rs.2892000 for 10 years. As per bank circular BG commission charges 0.30% per month. Bank is charging the commission on full amount. But sum bank charge the commission per thousnd amount, i.e. 2892000/1000*0.30 per month amount is Rs. 867.60. It is the correct calculation or not. If it is correct, inform if any RBI Circular or guidline please.

Can ESOPs be used to increase the net worth of the company? If yes, then how?
Thanks.

Our co. has import transactions but records its foreign exchange fluctuations under the head of 'Purchase import' and in the balance sheet adjust this amount with purchase.....whether it is correct treatment?In my view it is not correct....pls share ur views.....

Can any body assist me to compute deferred tax in the above problem.

Profit Before Tax and Depreciation- (650000)
Depreciation as per Income tax Act-125000
Depreciation as per Company Act-185000
Carry forward loss as per income tax-125000

Option I: future profit is certain.
Option II:- Future profit is uncertain.

what will be the answer if Depreciation as per income tax is carried forward due to insufficient profit and we are claiming depreciation as per company act. then how we can compute DTA on the above difference( ie Company Act minus Income Tax Act )since different in profits are not due to the change in depreciation rate.

Sir,

Please Tell me the accounting treatment of MAT, if MAT Attracts a company First time.

Actually Current year Book Profit is suppose Rs.5000 and Carried Forward Loss Rs.150000

Therefore there is no Tax liability after adjusting Previous Year Loss but Mat will attract For Rs.9250 (50000*18.5%).

Please tell me which journal entry is needed to pass in this case for creating Provission.Is the Following entry is Correct????

MAT Credit A/c Dr.9250
(Current Assets)

To Provission For MAT A/c. Rs.9250
(Current Liability)

Hi,

A partnership firm acquired assets by buyer’s credit. Generated the revenue for 3 years. The borrowing cost of the buyer’s credit was charged to the respective revenue.

After 3 years of operation the assets were transferred to closely held Pvt. Ltd. Co., where the partners are the only share holders, which is Incorporated for acquisition of the said asset and implementation of new project. However the buyer’s credit was not transferred, as 100 % margin was given by the partnership firm.

The borrowing cost including the loss due to foreign exchange incurred from the date of transfer of assets till the date of repayment of buyer’s credit is substantial amount.

Question:

a) whether the firm can transfer the liability to the Pvt. Ltd. Co. as the benefits of the asset is enjoyed by the company.

b) can this liability be treated as cost of the project under pre-operative expenses.

Hi,

We are a Pvt. Ltd. Co. engaged in generation electricity by wind. The company was incorporated to set up 50 MW power plant. In the process the company acquired the exiting 10 MW wind farms and balance wind farms are to be procured and installed.

The COD of 50% of proposed project was completed as at the end of the financial year.

In the process of implementation of the project and acquisition of exiting plant, the company generated revenue by sale of power and used for project implementation, thereby reduced the borrowings.

Question: Whether the revenue generated during the implementation amounts to reduction in pre-operative expenses / project expenses or revenue liable for tax.