DEAR SIR
I)MY CO.(SUPPLIER) HAS BAGGED AN ORDER OF RS.100 CRORE FROM A MULTINATIONAL POWER CO.(PURCHASER)
II)AS PER THE TERMS OF THE CONTRACT,INITIAL ADVANCE OF 10% OF THE ORER VALUE WILL BE GIVEN BY THE SUPPLIER AND PURCHASER WILL HAVEE TO FURNISH BANK GUARANTEE OF EQUIVALENT VALUE TO THE SUPPLIER.
III)THERE IS A CONDITION IN THE CONTRACT THAT AN APPLICATION FROM TIME TO TIME CAN BE GIVEN BY THE PURCHASER TO THE SUPPLIER FOR REDUCTION IN THE VALUE OF BG TO THE EXTENT OF ADVANCE ADJUSTED BY THE SUPPLIER.

IV)THE QUESTION IS:-
A)WHAT ARE THE ADVANTAGES IN COMPLYING WITH THE TERMS OF APPLYING PERIODICALLY TO THE SUPPLIER FOR REDUCTION IN BG VALUE.

B)WHAT WILL BE IMPLICATION IF THE FRESH BG WITH THE REDUCED VALUE IS NOT PERIODICALLY SUBMITTED TO THE SUPPLER AND THE ORIGINAL BG IS MAINTAINED WITH THE SUPPLIER

C)CAN THE SUPPLIER ENCASH THE ORIGINAL BG VALUE IN CASE OF NON COMPLIANCE TO OTHER CONDITION OF THE CONTRACT BY THE PURCHASER EVEN IF THE ADVANCE ADJUSTED
THANX AND REGARDS
S K MAJUMDAR
MANAGER
IA

company a controls the composition of board of co b to arrive economic benefit....as per as 21
now net worth of company b is 2 crores .a is is paying 1 crores to the shareholders(100%) of b.

how it will be accounted in the books of a.
a has decided to consolidate company b in its books of account

if a is [paying 1 crores to 70 % shareholders of b then what will be the accounting entry.
please reply fast.
it is most urgent

Dear Experts,

Whether a lumpsum payment of lease rent to acquire leasehold land for certain period is compulsorily to be capitalised in books?
Is there any legal requuirement to capitalise the leasehold land as FA?

or alternatively,

Company can book the advance lease rent as prepaid expenses and yearly amortise the same?

Whether expenditure incurred on removal of vegitation, inagruation expenditure including stone laying ceremony expenditure etc need to be capitalized ?

I need help for the querry, I got at the time of TDS return filing...

"Last Total Tax deposited provided in the statement is not matching with corresponding statement details available at TIN Central System"

Please suggest... what to do..

Kindly provide me with the file/formula/software, which can bifurcate the PRINCIPAL amt & INTEREST amt from an EMI

I had some excel file in my e-mail
but it's been lost

i have paid rent on 05.12.10 through ICICI Bank

the amounts is 240000-(tds10%) 24000
so amount paid is 216000
rent paid for the month from december 2010 to november 2011 i.e full 1 year

now how to pass the following entries
entries should pass according to financial yaer 2010 -2011
i am making the entries
plz check if it is correct or not

05.12.10payment entry
rent exps Dr. 72000
prepaid rent(inadvance) Dr 144000
icici bank cr. 216000
(being rent paid to xyz party for the period from dec2010 to november 2011)

05.12.10J/V Entry
XYZ( Party) Dr.24000
Tds on rent Cr.8000
Tds in advance Cr.16000
(being tds deducted on rent)

payment of tds on proper date
07.01.2011
Tds on rent Dr.24000
By ICICI Bank Cr. 24000
( being tds paid into bank)

plz sir check this entries and plz let me know that this entre is is correct or not

best regards
momin irfan
accountant
juniorlevel

As per AS 13, the Long term investment has to be recorded at cost unless there is a permanent reduction in value.

USGAAP/ IFRS require HTM (Held to Maturity) / AFS (Available for Sale) investments to be checked for impairment on every balance sheet date. (fair value principle).

There is an investment in stock market, which crashed on the balance sheet date. The management believes the fundamentals of the company are sound, and that there is no provision required as per AS 13.

1. Would this be ok to record the investment at cost as per AS13.
2. Would impairment be required as per USGAAP/ IFRS.

is adjustment entries are follow golden acconting principles

hi,
I have doubt, as to when to account for sale of goods in the month end.
e.g if the invoice is dated 30th Nov but dispatch has actaully happened on 5th Dec.
The accounting of sales was done on 30th nov itself to show more turnover.

Further sale is not on ex-works basis (i.e.here seller is bearing freight)

as far as i know since the intention here is to book more revenue and also CIF basis i think it should be accounted on Dec 5th.
Am i right?
Kindly reply....