Are the companies forced to adopt this standard or is it optional ?

I mean if a particular borrowing cost qualify to be capitalized, can the company charge it to P&L A/c (thereby reducing the profit)? Or is it forced to capitalize it compulsorily (profit will increase then)?

Historical cost of asset Rs 100
Written down value Rs 75

Sold the assets at Rs 150. That means profit of 75 Rs.

I heard that out of this 75 Rs profit, 25 Rs will be credited to P&L A/c and 50 Rs will be transferred to capital reserve. Is this treatment correct?

If yes, under which AS/ASI can I read about this treatment method?

A fixed asset with historical cost of Rs 150 & WDV of Rs 100 have been revalued Rs 150 and accordingly revaluation reserve of Rs 50 has been created.

Lets assume, the asset is subsequently sold for
Situation A for Rs 175
Situation B for Rs 120

What will the accounting entry and finally where will be balance in revaluation reserve be transfered?

If an old Fixed asset (WDV - Rs 5000) exchanged for new machinery (fair market value - Rs 10000)

What will be the accounting treatment?

Could you explain the difference between advanace recoverable in cash or kind and current assets as per schedule VI of companies act.

ther is a partnership firm where ther are 5 partners ratio 30:30:20:10:10
the partners having 20:10:10 share are threating to give a dispute letter in the bank.
The partner having 20% is a lady and she is partner in other Concrete industry with her husband.
the partners having 10% each are directors of a casting company which is private limited.
One of the partner having 30% STAKE in the firm is parnter in the concrete firm to help the firm in legal matter
and he is the gurantor in the cating company.
The business is being carried out by partners with 30:30 ratio and the other 3 partners are non working but they take profits and now.the partnership firm is doing good and the other 3 partners 20:10:10 are not doing good are trying to give the dispute letter. What action can be taken to avoid the letter and even if the letter is given what should be the course of action.
Thanks in advance

Does the agreement for take over of partnership need to be signed by all the partners or the major shareholders signature is enough.
Like there are 5 partners
having profit sharing ratio in the manner
partner a and b have 30% each tht is 60%
and partner c has 20%, partner d and e have 10% each tht is 20%.
Do we need the signature of all the partner or A and B are enough.

Thanks in Advance

hello sir/madam,
may i know that if we trasfer one heavy macinery already installed(a capital item)from one location to another location in the same factory premises, and a sum of rs 5 lacs is incurred for this trasfer , then whether this sum would be treated as revenue expense or a capital expense?

Does the agreement for take over of partnership need to be signed by all the partners or the major shareholders signature is enough.
Like there are 5 partners
having profit sharing ratio in the manner
partner a and b have 30% each tht is 60%
and partner c has 20%, partner d and e have 10% each tht is 20%.
Do we need the signature of all the partner or A and B are enough.

It is an existing partnership firm and the firm has registerd itself as a private limited company. all the partners hav signed all the MOA and AOA and it is incorporated with the registrar of companies.
All the partners share remain same in private limited comany also...

I would like to know the norms for take over of partnership firm by a private limited company.
Can a partnership firm be taken over before 31st march of a year and if it is possible then what are the accounting rules to be followed and things to be implemented in the books of accounts.
and what is the chargability in case of early take over on capital gains and how it is calculated.
And will the capital gain chrged of that year only or for oncoming years and what will be the mehtod of setting of such capital gains...
Thanks in advance