I require small clarification

1)when there is a capital reserve in the balance sheet it entity may be desired to take any capital asset

Then accounting treatment for that is

asset a/c dr
to bank

and any accounting treatment for capital reserve

2)when the reserve is utilised for any purpose thing is that Ivestment is made in an entity

What will be the accounting treatment for reserve

Hello Friends
I want to know the accounting of tools and dyes that whether they are to be treated as Fixed assets or consumabels and what treatment they are to be given in accounts

A company for its expansion purpose inagurates its branch (Manufacturing Unit) in the mid F.Y. 07-08 in other state, where the company incurs all the revenue expenses (viz. Car Expenses, Electric Charges, Flat Rent, General Exp., Staff Welafre, Postage & Stamp, Printing & Stationery, Professional Fees, Telephone & Traveling Expenses) and till the F.Y. 2007-08 production is also not started. All the abovementioned Expenses are directly attributable to such Branch, Can these expenses be Capitalised and added to the cost of the Project, Can these be recognised as pre-operative expenses and added to the work in progress?

When machinery spares which is used in connection with an item of asset and its use is irregular should it be charged to P/L ?

My question is that : one main contractor firm A has taken a contract from Govt department and the A firm has awarded the same contract to ther sub-contactor firm B on the same terms & condition on a certaing percentage of margin. Accourding to this sub-contact agreement all taxes and durties is deducted by Govt department from the bill of main contractor firm A and firm A is reimbusing this taxes from Sub-contractor firm B . Then my quesstion is that : what accounting entry will be passed in the books of contractor firm A and subcontract firm B . My mean to say that subcontract will debit the taxes account or other account because if taxes account is debited but subcontract firm A has not paid directly to Govt . please clearify.

My question is that : one main contractor firm A has taken a contract from Govt department and the A firm has awarded the same contract to ther sub-contactor firm B on the same terms & condition on a certaing percentage of margin. Accourding to this sub-contact agreement all taxes and durties is deducted by Govt department from the bill of main contractor firm A and firm A is reimbusing this taxes from Sub-contractor firm B . Then my quesstion is that : what accounting entry will be passed in the books of contractor firm A and subcontract firm B . My mean to say that subcontract will debit the taxes account or other account because if taxes account is debited but subcontract firm A has not paid directly to Govt . please clearify.

My question is that : one main contractor firm A has taken a contract from Govt department and the A firm has awarded the same contract to ther sub-contactor firm B on the same terms & condition on a certaing percentage of margin. Accourding to this sub-contact agreement all taxes and durties is deducted by Govt department from the bill of main contractor firm A and firm A is reimbusing this taxes from Sub-contractor firm B . Then my quesstion is that : what accounting entry will be passed in the books of contractor firm A and subcontract firm B . My mean to say that subcontract will debit the taxes account or other account because if taxes account is debited but subcontract firm A has not paid directly to Govt . please clearify.

What is the difference between discount and rebate?

Suppose we sold material worth rs 100 to a customer

During transit there is a loss of 5 Rs material and customer received material only worth 95/- .Now as per the contract with the transporter ,this loss to be recovered from the transporter

Now there are two ways to account it

1) First approach

Transporter Dr 5
&
Customer Cr 5

2)Second Approach

Sale Dr 5 RS
&
Customer Cr 5 Rs

Then

Transporter Dr 5
&
Misc Income Cr 5


plz let me know which one approach is correct and why ??

Suppose we sold material worth rs 100 to a customer

During transit there is a loss of 5 Rs material and customer received material only worth 95/- .Now as per the contract with the transporter ,this loss to be recovered from the transporter

Now there are two ways to account it

1) First approach

Transporter Dr 5
&
Customer Cr 5

2)Second Approach

Sale Dr 5 RS
&
Customer Cr 5 Rs

Then

Transporter Dr 5
&
Misc Income Cr 5


plz let me know which one approach is correct and why ??