We have made ad hoc provision of Rs 2 lakh at the time of finalization of books for the year 2007-08. Now while finalizing books for 2008-09 some expenses pertaining to 2007-08 are incurred but for which there was no specific provision made in the books in the previous year. So we adjusted these expenses against this ad hoc provision but now auditor is not accepting this treatment and they say that since there is no specific provision for that expenses it is a prior period expenses. So now eventhough there is balance in the provision but still the expenses for 2007-08 are booked as prior period expenses. So is it correct treatment. I don't agree with the stand of the auditor.
To elaborate I am giving following example

F.Y.2007-08
Ad hoc provision under Miscellaneous exps Rs 200000

F.Y.2008-09

Freight expenses Rs 35000/-for 2007-08 to be deducted from this ad hoc provision. So provision balance will be Rs 165000/-
But audtior is not allowing this treatment and transferring this freight outward expenses Rs 35000/- to prior period expenses saying that there is no provision for freight exps but the provision is for misc exps.

Can anyone help me in the matter and if my view is correct then how do i tell this to the auditor

Thanks in advance

Plz let me know how to make an entry of March slary with TDS and P.T.

How to make provision of salary entry in tally.....

Dear Friends,
Our company is Project Based Company.
We have taken a project.
We have given the whole contact to a sub contractor.
we have issued a Sale Bill of Rs. 6 Crore on our client.
The sub contractor has issued a bill of Rs. 7 Crore for the same project.
Can we book the whole Rs. 7 Crore Exp in the F Y 2008-09 or shoule we defer Rs. 1 Crore to next F Y?
The Project will be completed in the F Y 2010-11 & we are expecting overall profit from this.

What will happen if at the end of financial year i receive a purchase bill of Rs.10,000.dated 28/03/09, but didn't receive goods till 31 st March.

Plz mention wt will affect on Balance Sheet
and P & l a/c and what journal entry should i made for this.

sir my query is ..........

suppose a company traded in an old machine having a carrying amount of Rs.16800 and cash difference of Rs. 6000 for a new machine having total cash price of Rs. 20500.so my question is what would be the cost price of new machine?
whether it will be Rs.20500 or Rs.14500(Rs20500-Rs.6000)?

anybody can explain me the difference between amortization & provision & reserves ?

Dear All,

Whenever any pvt. company makes profit and if it is distributing dividend to its director, then is it mandatory to transfer some portion of profit to General Reserve and how much? OR in geeral I would like to know that treatment given to General Reserve in case of PRofit making company?

Thanks in anticipation,

Amit

the best books for FM and accounting of ipcc

Hi
A public ltd co has made 100% investment in a private limited company. As of today the private limited company has not yet started the commercial production. The private limited co has only cash as it's assets and miscellaneous expenses to be written off. As of today how would the investment would be valued. Is there any deminition in the value of investment.

Regards

Dear frinds ,

can any one provide me material regarding Accounting Standards in the form of Q & A or suggest the Books for the purpose of Answering the PE-II exam.

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