Hello all experts
I am an accountant in a pvt co. There is one case of vehicle purchase and I have confusion. Kindly help me to solve the querry. My query is:
The Director of the company has purchased a car on loan from Bank in his own name alongwith the Company as a co-Borrower.The repayment of loan is through Company's account. What will be the entry in case of company's boks ? whether Car comes in the Company's books or in the Director's books? Kindly reply I am waiting It is Urgent.
Thanks
regards
sanjay

Sirs , how to make decision of purchase of an capita assets acquired on finance , whaen we donot know its cash inflows? for example :

Ltes it cost is 100 laks
finance is 80lakhs with interrate of 10 5 per annum with yearly rest with epayment schedule of 10 years and its residual value after depreciate of 5 %. please guide me , when and how my lone is worthy for for purchase of assets ? and whether i shoud go for this ?

If a part of Invertor is sold during the year so how we calculate loss/profit & depreciation for that year.according to companies act.
For Example Cost of Invertors(not known the no of invertors) is 100000 dep upto 31.3.2009 is 40000 & on 30.6.2009 a invertor is sold for Rs. 5000,the actual cost of that invertor is not known as a single head is used for all invertors how dep & loss/profit on sale of invertor is calculated according to companies act,will it affect deffered tax also

Dear Experts,
A Pvt. Ltd. co. is setting up its factory in a remote area where no electric connection is available. The co. has incurred Rs. 458220/- to bring electric connection to its factory area and for setting up of electric poles.

What shuold be the accounting for above expenditure.
Whether it should be treated as deferred revenue expenditure, and if yes, what amount should be written off during the year and in how many years.

The factory is still under construction.

Regds,

AS PER THE ICAI STUDY MATERIAL OF CPT COURSE SALES IS CONSIDER AS NOMINAL A/C AND SALES RETURN IS CONSIDER AS REAL A/C. HOW IS IT IS POSSIBLE? AS COMPARE TO THE LAST QUESTION ICAI POINT OF VIEW THE CORRECT OPTION IS SALES RETURN A/C.REMAINING ITEMS ARE GENERALLY INVOLVED IN THE NOMINAL A/C. SO THE ODD ONE OUT IS SALES RETURN A/C.

is sinking fund A/c & debebenture Redemption Reserve are same?

Whether gain or loss arising on Foreign creditors at the year end can be transferred to proviosn for foreign exchange loss or gain a/c instead of transferring the gain or loss to the respective party A/c's

Hello

If a indian co. purchase a fixed assets for Rs.4.5 crore on credit from a forign co.but after 2 yr that forign co. is insolvent and did not claim his amt.

I want to know what is entry as per AS(accounting standard) and wht is tax implement as per income tax.

Our client is a trust and it has shown an amount of Rs. 20 lakhs as advance given for a property. This property is a disputed one and so the trust could not occupy it. Thus the trust had not capitalised the asset.


Now the trust sold the property and received another property in exchange which is worth 1.5 crores (stamp duty value)So now how should the accounting treatment be done? At what value should the new property be shown and why?

Dear Experts,
Require ur immediate reply...Very urgent Sir!!!
For a first year incorporated company we are finalizing the audit.
For AS - 22 calculations i have done the following workings. Please tell me whether i am correct or not. Because of this i have not yet said to my senior that the audit has been finalized.

Closing wdv balance of Fixed Assets as per Companies Act - 60,00,000
Less: Closing wdv balance of Fixed Assets as per Income Tax Act - 50,00,000
Difference in balances = 10,00,000
Note:
(1)This is due to difference in depreciation amount. In Income Tax act we are claiming more depreciation amount than companies act. Therefore Tax Profit is less than Book Profit, consequently we are paying less tax now which we have to pay at a latter point of time, thats why we have to create DEFERRED TAX LIABILITY.
(2)It is assumed that there is no amount disallowed u/s 43B.



Deferred Tax Liability to be created - 10 lakhs * 30% (no surcharge or cess since less than one crore income) = 3 lakhs.

First Entry - Booking the expense and creating liability:

DTL* (P&L) A/c Dr. 3 lakhs
To DTL (B/s) A/c 3 lakhs
(Being the amount of Deferred Tax liability which we have to pay in later years for which currently booked as expense and corressponding credit (i.e. liability) is being created)

* Instead of DTL (P&L) we may also term it as Tax Expense

Second Entry - For transferring the expense into P&L a/c:

P&L A/c Dr. 3 lakhs
To DTL (P&L) A/c 3lakhs
(being the amount of Deferred Tax transferred to P&L account for the year ended 31.3.2010)

Please inform me whether i am correct or not in this regard.

With regards,
Rajesh.