Dear Experts,
For Ex. Sale date on 1st Feb. 1000 $ at 40 per $.
Credit period 3 months.
On balancesheet date 31st March per $ =Rs.42
On 30th April when 1000 $ are received one $ = Rs.40.5
We have to credit Rs.2 per dollar totally Rs.2000 to foreign exchange difference a/c then the foreign exchange difference a/c will be transferred to P&L a/c.

Now my doubt is even though i have transferred to p&l a/c Rs.2000 my actual profit on the forex is Rs.500 only. What to do this notional profit of Rs.1500, why i have to pay tax for this Rs.5000?
Another doubt is again on 1st April should i have to reverse the profit of Rs.2000?
Please explain me...
With regards,
Rajesh.

My case is

THe company replaced the factory premises with Cement roads in the place of tar roads.

The management is arguing tat this expenditure is to be charged to revenue.

But in my opinion the expenditure incurred increase the life of the asset. so the expenditure is to be capitalised

whether my opinioni correct or not? if yes or no,provide me answers with necessary case references as soon as possible

Thanks in advance

Sarath

X applied for 150 shares and 100 shares alloted to him. FV Rs. 10.
Issue Price Rs. 12 per share {Rs. 2 App., (3 on Allot. + Rs. 2 on Securities Premium due at d time of allotment) Rs. 5 on First

In AS-4 events occuring after the balance sheet date is adjusted if it is adjusting event . Satutory obligation is mandatory to adjust in financial statement.eg Dividend.payment of fee of registar of companies is also adjustable in finacial statement ?

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Business: Clearing & Forwarding agent
total receipts > Rs. 40,00,000
very low margin on receipts
comm. income ranging between 4 to 5 lacs
should i treat the diff between receipts and payments as commission ?

My client receives exemption in Sales Tax based on the salary given to the staff for first 5 years of company in existence.

We get the amt. of exemption after 5 years completion.

Now, on year end, the position is that we recd. grant of say Rs. 100 and take set off in Sales tax for Rs. 40 and balance Rs. 60 still stands in VAT Receivable A/c (Govt. Grant).

What is the proper accounting treatment at the time of getting Exemption or Grant , at the time of monthly set off with VAT Payable . How to show Grant in Financial statements?

Basically, I am confused whether it is a revenue grant or capital grant.

Dear Experts,
I have put this query sometime before too..but it is not being replied thats why i have again posted here because that question may not be viewable now by the experts.

Please tell me how i have to pass while entering in a Forward Contract and honouring that forward contract.

With regards,
Rajesh

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Whether purchasing company can create DTA in case of amalgamation where selling company has losses.and purchasing company has virtual certainty.let me know the treatment under both the method of amalgamation.also refer ASI 11 issued by ICAI.

Thanks in advance