1)The duration of project in Software Industry normally is more than a year. AS-7 allows only completed contract method.In such scenario where the comapany cannot raise a invoice till the completion of the contract, but it has incurred some expenditure till the end of the year in performance of the contract, how does it deal with expenditure already incurred?

Is there a concept of 'WIP' in Software Industry?. I have not come accross 'WIP' in reports of IT companies.

2)If the company has received some advance based on milestones achieved, can this sum be deducted from expenditure already incurred and show remaining balance as WIP?

Kindly clarify.

Raw Materials are purchased by a company. The goods are transported through Goods Transportation Agency. The company pays service tax at an abated rate on behalf of the goods transport agency and no credit for service tax paid has been taken by the company.Can this service tax amount be added towards the cost of inventory in the books. If it can be done how will be treatment at the end of the year when closing stocks are physically verified and valued, as per AS-2

I want to know how to create closing stock a/c in tally.

I tried creating closing stock ledger under the group stock-in-hand and entered the opening stock value and entered the closing stock value, but closing stock did not appear either in p& l a/c or in the b/s .

please give your suggestions

Re sir\madam
we are authorised distributor of compressor and our clients are goverment bodies where we billed the client on 100% basis as per po term but, as per po payment terms our client only gives 90% amt against delivery and 10% after 6months to 1 years period after despatch
since we bill 100% our trunover increase and since we receives only 90% our cash flow get disturbed can we show remaining 10% as contingency provision ? since the 10% receivable is against performance bank guarantee and completion of erection and commissioning and acceptance by Client.
Since this affects the outflow and in form of heavy tax burden if the 10% amt turns in lakhs will we can postpon the tax liability to that extent please resolved the query to the earliest

Dear Sir and Mam,

Can you help to set up Fees for Itemization per position:

I am working as a Accounts Officer in one Company. Nature of Business for the company is Medical Transcrption and Software Concern Based on US Client.For the New Client we Charges a Set Up fees Per position is USD 2500/-

We Calculated the Set up Fees Based on the Exisiting Infrastructre. The Exisiting Infrastructre Developed based on OCB Loan from USA USD 96000. That amount has not been repaid still to date.But Our Client is not Accepted our Set up Fees Itemization Based on the Exiziting infrastructure.
Can You Help. It is Possible to Explain to our client based on any Laws or Accounting Rules as per the Indian Act or Give a Structure of Set up fees for Our Client

If any one problem and solution on AS-22 then send it on my mail ID: vpanjiyar@gmail.com

* Ours is a Housing Co-Operative Society(147 members). * One Member has donated one Ambulance Van. * We have debited Asset A/c. and Credited Donations A/c. * Our only income is interest earned from Fxd.Deposit in Bank which is a meagre amount. * The P & L a/c shows NET LOSS when Depreciation on Van (5% on cost) is transferred to P&L A/c. Is there any way out to carry Book adj. between Asset a/c and Asset Revaluation Reserve a/c (by transferring cost of van from Donation a/c), thus avoiding the P&L A/c ? Please suggest.

Ours is a Housing Co-Operatives with 145 members. One Member has donated Rs.2.3 Lakh to Buy one Ambulance (Maruti Van). Our Income & Exp. A/c is credited with Interest received against Fixed Deposit i.e., Rs.20,000 per annum. In addition to other expenses if depreciation @ 5% is charged to P & L A/c. a Net Loss figure appears. We have debited the Asset A/c. and credited the Donations A/c. with the cost of Van. Is there any way to credit any Reserve/Liab.Account instead of Donation and adjust the depreciation directly to that Reserve/Liab.a/c and crediting the asset account. This may help us to avoid debiting the P&L Account. What we shall do ? Please suggest. basabroy817@gmail.com

Dear Sirs,

Can you help me about PF?

1. Basic Salary is 30,000
Restricted Salary as per PF Act Is Rs6500

In this case what amount i want take for Employee Contribuation at 12% and Employer Contribuation at 12?

2. Is this stiphened paid to the staff is applicable for PF

IN CASE OF AN MOVABLE VEHICLE LIKE LOCO IF ITS MOTOR IS CHANGED AND MAJOR PARTS OF ITS BODY IS ALSO REPAIRED. BUT ITS REGISTRATION NO. IS NOT CHANGED. THIS MAY RESULT IN INCREASE IN THE PREVIOUS ESTIMATED LIFE OF THE ASSET. BUT IT DOES NOT RESULT IN CHANGE IN ITS CARRYING CAPACITY. SHOULD SUCH EXPENDITURE BE CAPITALISED OR TREATED AS REVENUE EXPENDITURE?