Experts please clarify me on capital employed computation.
There are 2 ways of Capital Employed computation.
One through liabilities side Share holders Fund + Long Term liabilities (i.e. Debentures, Secured Loan etc.)

Second one being Assets side Fixed Assets + Working Capital

Please let me know any other item such as (P&L - Debit balance) has to be deducted while computing both the methods.
Is there any other item which has to be considered for computing capital employed.
Thank you,
With regards,
Rajesh

My co has a foreignor as MD. When he travels to different parts of india for business matters he uses his international credit card for payment for hotel accomodation etc. But he faces the problem of exchange fluctuation and everytime loses money. Can this be reimbursed by the company???? If yes how???

1.In case of a listed company how we have to account the purchase of assets in Hire Purchase System? Please provide me the journal entry too.

2. How to go about Depreciation in case of Hire purchased Assets.

3. Should we have to created any Charge in the Register of Companies?

With regards,
Rajesh.

Should we have to disclose liability of term loan repayable within one year as
Current Liability?
With regards,
Rajesh

Sorry Experts, I shall put my question more clearly.
The Term loan is repayable in 10 years amounting Rs 250 lakhs.

In year 1 the principal repayment amounts 25 lakhs

Now whether we have to show in the balance sheet Rs.25 lakhs in current liabilities and the balance Rs.225 lalkhs as term loans. Else we have to show Rs. 250 lakhs as term loan in the balance sheet

Thank u sir Mr. Rasesh and the other expert.
With regards,
Rajesh

1. Can a company charge depreciation different from the rates specified in the Companies Act? If it does should the auditor has to qualify this in his audit report?

2. Is it mandatory for the companies to write off the assets whose balance is Rs.5000 or less?

With regards,
Rajesh

Plz tell me under which rule/GN/standard/compliance rent equalisation reserve is neccesary to create.

Dear Sir
Should we need to capitalize the following expenditure? or treat them as revenue cost?
a) land survey cost
b) cost of cutting raw jungle (useless vegetations) on land, before starting any construction.
c) amount paid to architect/structural consultant for preparing plans.
Pl. guide.

What it stands for me already aware..but what it incorporates in itself that's doubted..specially in relation to pharma sector...Also whether it is prepared for whole unit or department wise or cost center wise...

please helppppp



Manik Anand

Respected Freinds,

I am an accountant of a individual having business. My client has taken out 20 different LIC policies for which an annula premium of Rs. 200000 is being paid every year. 1) Can i show the premium paid on the asset side of the balance sheet policy wise thereby strenthning my balance sheet instead of debiting it to Capital Account?
2)Also since i have maintained business books and personal books seperately, where will the effect of such transaction come. Payment is made out of business funds.

A is awarded a contract from B and B have given same contract on back to back basis to us with an agreement that we will pay 5% on contract value to A. All the purchase invoice is in the name of A but we are issuing cheque on behalf of A. Can we book the purchase on our account? If no then what will be the treatment in the book of A and in the book of us.

Please help in this regard.