Why show "Estimated amount of contracts remaining to be excuted on capital account & not Provided for" in the head of Contingent Liability in Schedule vi of company Act 1956.

whether EBITDA reflects operating profit

From the following information , Prepare the Final Accounts of Rameshwar Ltd For the year 2006-07

Gross Profit Rs. 6,00,000
Gross Profit Ratio 25 %
Current Ratio 2.5 : 1
Liquid Ratio 1.5 : 1
Stock turnover (Cost of goods Sold / Average Stock) 8 Time
Operating Ratio 95 %
Fixed Assets and Capital Employed 0.8
Debtors Ratio 2 Months
Creditors Ratio 1 Months

Additional Information :
1.12 % Debentures is the only Long – term debt.
2.Operating expenses include debenture interest of Rs. 12,000
3.Cash Sales is 20 % of total Sales
4.Cash Purchase is 20 % of total Purchase
5.Opening Stock is Rs. 30,000 less than the closing Stock
6.Current Assets include STOCK, DEBTORS and BANK. There is no BANK OVERDRAFT in Current Liabilities. Consider, Provision for taxation as a part of current Liabilities.
7.Proportion of Land and Building , Machineries and Furniture is 3 : 2 : 1
8.Opening Balance of general reserve is Rs. 40,000. Provide 50 % of the net profit for tax.


My email id
nilay.v.chaddarwala@gmail.com

I have one doubt - We are sealing software service to one reputed organization - normally we are allowing discount for that company. That also we are showing in Invoice Like Invoice issued Like below of Rs. 20000
Less: discount @10% Rs.2000/-
Total Rs.18000-00
Tax Rs.1854-00
Total Payable Rs. 19854-00

But we are entering in books of accounts is Rs. 18000 and Tax amount only.

Friends tell me that is right method or otherwise we have to enter discounted amount entered in Books.

Can you guide in this regard....??

ONE YEAR MARKET VALUE OF STOCK IS RS. 8 & COST IS RS. 10. SO WE VALUE THE CLOSING STOCK IN FINAL ACCOUNT IS RS. 8.

NOW IN SECOND YEAR THE SAME STOCK IS PENDING. & THE MARKET VALUE OF THE SAME IS RS. 12.

CAN WE VALUE THE STOCK AT RS. 8
BECAUSE NOW AT SECOND YEAR THE VALUE OF RS. 8 IS BECOME OUR COST & VALUATION IS ON COST OR MARKET VALUE IS LOWER.

If a Indian company is having Foreign Non-Integral Subsidary then at the time of conversion into indian currency all asset including Share capital and investment of foregin subidary into his subsidary is also need to convert at closing rate.

In one of our clints accounts cash in hand on some particulars days are very much.

He is asking how to adjust that excess cash

So plz kindly suggest me the appropriate n practical ways to do it!!

A & COMPANY STARTED CONSTRUCTION OF A PROJECT IN APRIL 2008.TYhe Expenses for the period 2008-09 is Rs 10Lakhs.Howevever construction was completed in January 2010.Advances From Customer was Rs 15 Lakhs.So How Will I chart out the profit & loss and balance sheet for the period of 2008-09

Q1.for a person filling ITR-4 as professional(he is a salesman),can he claim vehicle loan , EMI as deduction from his income? if yes , on which side of balance sheet or profit and loss a/c will it appear?

Q2.he has vehicle on his own name for which he has fully paid his vehicle loan EMI on which side of balance sheet will this appear?

We are a corporate entity belonging in dairy sector. Sometime when a scheme is in operation, on achievement of some target fixed, the distributors/retailers are given performance incentive. Can we classify this as "sales promotion" of expense in nature while booking the expense in accounts? what is your valued suggestion.