Journal voucher - when to use
Payment voucher - when to use
Receipt voucher when to use
Purchase voucher when to use
Sale voucher when to use

Dear all,

Please tell me:

I have purchased a monoblock pump for the first time ina manufacturing unit...i have capitalised it....after some time the motor got spoilt and it is sent for reparing...in the mean time i order for another motor and start my production....will the second motor also be capitalised of it is a repairs and maintenance cost???

A Financial Services Company (FSC) has subscribed to equity shares of an infrastructure company (company) with share subscription and share buyback agreements providing that promoters of the company or certain other identified persons shall buy the shareholding of FSC at the end of specified tenure at such rate which provides a pre-determined/desired Internal Rate of Return (IRR) on the initial investment. The aforesaid agreements also provide that the identified persons shall make payment to FSC on quarterly basis, at a specified rate on the equity investment, as interim return. These interim returns shall also be taken into consideration for determination of buyback price of shares at the end of the tenure.
These proceeds are in the nature of part payments towards specified IRR and/or share buyback. There is an inherent uncertainty with respect to the final gains/losses in such transactions, at the time of actual buyback. Please advise as under :
(i) Whether the interim proceeds can be treated as income in the year of receipt and taxed accordingly; or
(ii) Whether the proceeds are to be treated as advance receipts in the accounts and accounted for as profit on investment/capital gains at the time of buyback.
(iii) If (i) is not possible and the buyback does not take place, what would be the accounting treatment of interim receipts, at the end of the tenure – to be treated as income or to be used for reduction of acquisition cost?

Dear Sir,
Sub: Query regarding prsentation of Sale during Trial Run

Please refer to the above, recently I go through balance Sheet of Reliance Industries Ltd for the Financial Year 2011-12. As per Point no K for revenue recongnition of Significant Accounting Policies at Page No.117. "Revenue is recognised only when it can be reliabily measured and it is reasonable to expect ultimate collection. Revenue from operations uncludes sale of goods, Service Tax, excise duty and SALES DURING TRIAL RUN PERIOD."

The same above presentation of Trial Run sale done in the annual report of Uttam Galva.

MY QUERY IS THAT IF THEY ARE PRESENTING TRIAL RUN SALE WITH NORMAL SALES THEN HOW THEY ARE CAPITALISING DIFFRENCE OF SALE PROCEEDS & EXPENDITURE MADE DURING TRIAL RUN PERIOD.

IS THERE ANY WAY TO SHOW FULL SALE OF TRIAL RUN WITH NORMAL SALE AND EXCESS OF EXPENDITURE OVER INCOME TO TRANSFER TO FIXED ASSETS ACCOUNT.

Thanks & Regards

Amit Kumar

Student CA Final

How to close books of accounts of a company? What are the entries to be passed.....

any one plz tell me that cash flow mandatory for whose companies

Hi,

I have a doubt regarding the accounting for excise duty, Let us say the company had gross revenues of 100cr and 10cr as excise duty, net revenues =90cr and the company offers credit period of 60 days to its buyers. So the total debtors outstanding will be INR16.66cr (100*60/360). Now will the company book the entire 16.66cr as debtors or 15cr (90*60/360) in debtors and the excise duty component of 1.66cr as part of loans and advances? Generally how much time do companies have to submit the excise duty to the excise department?

DEARS

Kindly explain with entries for following eg.

If A company make cash sales, that cash deposited in company B a/c. In this case company A shows cash balance Dr. But in company cash balance show cr.

Explain how to reconcile

If Non-current Liabilty ,Non -current Asstes balance is 0, than is Mandatory to disclose the amount on the face of Balance Sheet ,as per Revised Schedule VI. Its Urgent

what will be the accounting entry for the tds to be deducted on advance payment?