Hello All,

Thank you for your help in advance.

I have started a small business on September 6th 2007. I have two sweet shops and four curry points in Hyderabad. To my surprise my turnover has reached 60-70 lacs/year in less than two years. Apart from manually keeping track of my cash flows, I haven't yet hired an accountant or a book keeper. I have also not prepared any financial statements for my business till today. I know its pretty late and should get done with creating financial statements for my business as soon as possible. My questions are,

1)I know nothing about the financial documents that are required to be maintained by small businesses in the food industry. How do I go about starting with this accounting stuff for my business? What am I required to do stepwise?

2) Should I myself enroll in an accounting course and maintain my own accounts? If yes, which is the best course and institute in Hyderabad? I am a B.Sc(comp) graduate and have no accounting knowledge.

3) How to make sure I hire a reliable accountant who will actually do his job and not just fake that he is doing it? Should I go to a CA for preparing my year end statements??

Hello All,

Thank you in advance for your help.

I have started a small business on September 6th 2007. I have two sweet shops and four curry points in Hyderabad. To my surprise my turnover has reached 60-70 lacs/year in less than two years. Apart from manually keeping track of my cash flows, I haven't yet hired an accountant or a book keeper. I have also not prepared any financial statements for my business till today. I know its pretty late and should get done with creating financial statements for my business as soon as possible. My questions are,

1)I know nothing about the financial documents that are required to be maintained by small businesses in the food industry. How do I go about starting with this accounting stuff for my business? What am I required to do stepwise?

2) Should I myself enroll in an accounting course and maintain my own accounts? If yes, which is the best course and institute in Hyderabad? I am a B.Sc(comp) graduate and have no accounting knowledge.

3) How to make sure I hire a reliable accountant who will actually do his job and not just fake that he is doing it? Should I go to a CA for preparing my year end statements??

what is an accounting Treatment for Fringe Benefits Tax in Case of Company & Individual and how it effects the balance Sheet

The company carries on the business of financial services.It has brought forward losses.But is making profit from past 2 years and paying tax under Provisions of 115JB.The company did not have any fixed asset, acquired fixed asset in middle of last financial year.But no provision for DTA or DTL was made last year.
My query is:
1) how should the deferred tax be treated this year?

2)What is the effect of brought forward losses on DTA or DTL?

3)Should the DTA or DTL added or reduced from brought forward losses?

4)The company has a brought forward loss of 10Lacs still ,based on the concept of prudence since the company is making profit from 3 years we can expect it to make profit in the next year also.As the company is paying taxes under MAT provisions on Book profit,can the company set off the MAT credit against the regular tax payable if the company makes huge profits next year?How can this be done?

5)Does MAT provisions have any bearing on Deferred tax? If yes how should the deferred tax be treated?

6)If the Company is not carrying financial services will the answers for above questions be different? What will be the answers?
[..Sir i understand there are too many questions but i really need answers for all of them as i have to complete the finalization.I hope i can get answers for these questions.]

Dear Colleagues,

In case any AS become first time appliacble for any FY,do we need to provide comparative figure of last year also. e.g if turnover crosses 50 crores for FY 2008-09, do we need to prepare Cash flow for FY2007-08 also.

If not pls provide some notification/circular/Expert Advisory opinion reference.

A new Computer moniter replaces with old moniter. old moniter is not in condition of work.
Will new moniter Be capitalised?

Will The Treatement Be different, if old moniter is in condition of Work and transfer that into stock?

The company carries on the business of financial services.It has brought forward losses.But is making profit from past 2 years and paying tax under Provisions of 115JB.The company did not have any fixed asset, acquired fixed asset in middle of last financial year.But no provision for DTA or DTL was made last year.
My query is:
1) how should the deferred tax be treated this year?

2)What is the effect of brought forward losses on DTA or DTL?

3)Should the DTA or DTL added or reduced from brought forward losses?

4)The company has a brought forward loss of 10Lacs still ,based on the concept of prudence since the company is making profit from 3 years we can expect it to make profit in the next year also.As the company is paying taxes under MAT provisions on Book profit,can the company set off the MAT credit against the regular tax payable if the company makes huge profits next year?How can this be done?

5)Does MAT provisions have any bearing on Deferred tax? If yes how should the deferred tax be treated?

6)If the Company is not carrying financial services will the answers for above questions be different? What will be the answers?
[..Sir i understand there are too many questions but i really need answers for all of them as i have to complete the finalization.I hope i can get answers for these questions.]

When the value of intangible assets like goodwill,patent get less then this less amount shown in amortization rather then dep. But when its value increased then what should be the name of head instead of appreciation? Thanks in advance

We have purchased memory stick for laptop and pendrive in what head they are clubbed and if they treated as assets then what would be Dep Rate?

We have purchased Tally new version and other software so in what Head name it should be entered in books and what nature of this head ? and if assets then we can charge dep on it and if yes then in what rate? Thanks in advance