is stock in hand considered as profit?
If NO,THEN WHY DOES IT APPEAR IN THE TRADING A/C TO ASCERTAIN GROSS PROFIT?

Dear expert,
we are having few private unlisted companies and proprietary concerns under same management. we used to transfer funds in between these companies & firms when there is shortage and even some times goods & services were also bought between the these companies. Due to these transactions one company will be liable to other i.e debit and credit balances exists among these companies and firms .My doubt here is can we adjust debit balance of Company "A" in the books of Company "B" against Company "C" credit balance in Company "B" books.

Auditor not checked bank statment carefully in last year. In our audited balance sheet bank balance is not tally with our bank statment. Our CA checked bank statment as on 15.03.11 and same amount given in balancesheet as closing balance on 31.03.11. after 15.03.11. bank debit bank charges on 31.03.11 and therefore Closing balance as per bank statment and our account not tally.
What entry we should do?
What about auditors resposibility?

Can preliminary exp cn adjuest in profit n loss a/c when its incurred. Or showing and carried forward as miscellanous exp.

Hi, I am working in propritor firm, My query is we closed our last yr.books.Propritor open current a/c in last year but not shown in balance sheet. Now in this year we have to show it in books. So,in that account last year closing balance was Rs. 10000.
What entry should I do?

Hi,

Please say how acn we solve the problem:

Answer Rs.20,000.00 after deducting 2% please say how to calculate gross amount.

regards

We have a C&f business. the parent company provide us wth stock and we give it to the stockist. But we generate sales bill as they use our vat number though it is not our sales. Now in tally we have to show it as sales because parent company use our vat number to sale goods. this is not our revenue. They give commission which is our only revenue. how to show effect of such sales in tally as if it will be a part of sales without being a part of revenue.

somebody please help me.

Please Clarify EPF Deduction responsibility of my company from housekeeping contractor who is having less than 20 labours engaged .
mine company is registered inn EPF authority because having more than 300 employees and EPF of employees is deducted from the salary

i want to ask whether we should deduct epf amount from the contractor bill and paid to the authority ,Contractor is having less than 20 labours.IF yes what we should do..

suppose the company purchased a software ( saral payback premium - v5 - (2011 -2012) for Rs. 5500. Is this software is to be treated as asset or to be treated as revenue exp. and allowed under income tax act ?

A Company buying land and entering into contract with buyer for construction of residential house. After construction complete it sell land with building to buyer for a consideration.
Query:
1. whether AS-7 will be applicable for the above situation?
2. If No, how to recognise a revenue for a year, can it use completed contract method?