Hi
Pls help me to in the folowing issue

My company is a trading company and it is having projects also.Majorly air conditioning projects each project may take years to compleate and 60 % of the project will be the inventory cost and 40% for instalation charges.
i would like to know, the accounting policy can be adopt for. presently while issuing the materials it is considered as Sale.
i belief if we choose contract accounting, the invoicing should not afect sales account.
Pls let me know in detail how the contract accounting works under this siuiation.

Thanks

Can any one give me the entries by which MAT CREDIT is created, where normal tax is less than tax under MAT. And how it can be adjusted where normal tax(under tax laws) excess of MAT in later year.
(Entries which also involve provision for tax A/c)

And also give entries if Deferred tax is invovled.(in both cases ie DTA/DTL)
Thank Q

why should we call it as Balance sheet rather Statement of assets and liabilites since it shows liabilites and assets

Hi All,
I have a doubt in AS 20. In case a company is incorporated on 7th Jan and the books are closed on 30th March, should the EPS that we calculate be adjusted for the entire year...since it would normally be only for 3 months since the operations were carried out only for 3 months.

Hi all,

Correct accounting treatment on foreign travel advance accounting entries and the reason behind it?

when should software development charges be recognised in the books of the vendor in the following case:

X pvt. ltd is a software co. into the business of software development. Y inc. is a company incorporated in U.S.A who gives a contract of 100000$ on 1-5-2008. Y inc. pays X pvt. ltd 10000$ every month based on no. of manhours * rate per hour as software development charges.

X pvt. ltd accounts for the software development charges on actual receipt of money on conversion into indian rupees without accounting for Currency flucutations of rate on conversion as required under AS-11. Is the stand taken by X pvt. ltd correct?

send your answers to psrinivas1@in.com

Or they mutually agree or disagree?

Suppose when we are valuing inventory we take cost or NRV which ever is less.

But is it prudent to show like that as it is not showing the real values of stock.

Why do we call it as Profit and loss A/c ?Because it shows either profit or loss only. Can't we call it as Profit or loss Account?

How accounting should be done of options. What are the different types of options. What is ratio in relation to options.

Dear Experts,

I am working in real estate sector we have purchased computer, AC, UPS & batteries, furniture for site office and construction has been started already in site.
Now I want to know how we can treat these fixed assets.

1. These are part of fixed assets in early stage of project.
Or
2. We have to put all these in capital work in progress and at the end of financial year we
Should provide a provision and put all this assets into fixed assets and have to provide Depreciation also.
Or
3. We must treat as fixed assets simply




Regards
Ravinder