Client has some AHU motors which is recently purchase 3 years back, wanted to replace the same Motors with motor consume 50% less energy.
Old motor would have useful life for 10 Years.

Should this be capitalized or consider as replacement and charge to revenue?

Dear Sir,

in our Store roof is broken due to heavy rain it efect some goods damage. it cover under Insurance.
before pass the entry in books of account GP is postive value but
when I passed the entry in Tally

Insurance Claim receivable Dr. 225000/-
Purchase A/c Cr. 225000/-

Gross profit show negative value
please suggest Can i make mistake during entry

one payment of rs. 25000/- paid on 01.01.19 in advance to contractor & second payment of rs. 15000/- paid on 01.02.19 is also in advance and the bill received from contractor for rs. 40000/- on 01.03.19 later.

whether we should deduct tds on advance payment or not. both advance payments are below rs. 30000/- but single bill received later for rs. 40000/- is above rs. 30000/-.

Please clarify my query

One party had preliminary exp in 2015-16 which was shown in Asset in balance sheet in that financial year and till now i.e. upto financial year 2018-19 that expenses were shown in asset side of balance sheet . If party wants to w/off in financial year 2019-20 then what is the treatment to w/off that preliminary expenses? Please explain the treatment in Accounts and provision as per income tax .

Sir / Madam,
Pls. let know whether discount offered by one trader to other trader in the course of business will be defined as "TRADE DISCOUNT" and will not have any impact into books of accounts " Discount given and/or received" ledger.
For ex: "X" Trader having GST no. issued tax invoice offering discount on bill of Rs.10,000 to Buyer "Y":

Gross amt : 10,000=00 qty: 1000 units per unit:10/Unit (10,000/1000 units)
Discount : 1,000=00
CGST/SGST(As applicable) (will be computer after discount from gross value which comes to Rs.9000).

So while booking this purchase bill recd from "X" my purchase value would be 9,000=00 (Rs.10,000-1,000) like wise my per unit cost would be 9.00 (9000/1000 unit). In short there will be no effect of discount of Rs.1,000=00 offered in bill by "X" a trader Seller) in his sale bill to "Y' (a buyer.)as it comes under "Trade discount" and and accounting rules does not allow effect of "Trade discount" into books of ac/s of "Y" a buyer.

However, in case of giving a effect of discount offer by seller as per his bill above is also a trade discount and hence no effect will be given also in books of seller offering a discount offered into bill raised to buyer.

Hello
My client is a company engaged in the business of plotted development. Means It will purchase a piece of land, develop roads, parks and other amenities and will sell the plots. Can you please help me as to which accounting standard is to be applied for revenue recognition. AS-9 or AS-7 i.e POCM as it is not a construction contract but guidance note on real estate transactions provides for use of POCM where economic substance of transaction relates to construction contract. Please revert asap.

Company A has two subsidiaries B and C (both 100% SH), It also has a JV with D (50%) and an associate E (49%). Which companies should contribute in A's consolidated P&L??
Eg:
Sales: A (standalone) - 100, B - 20, C - 20, D - 150, E - 100
Sales: A (consolidated) - ??

Dear Team,
I've got a doubt, how can I account for my assets in the newly incorporated company? before incorporating I was operating as an individual but now I'm using my assets for the purpose of my company and i want to include all those assets in my new company's records. How can I Account for this? can anyone help?
Thanks in advance.

The Assessee had imported a machine in F.Y.2015-16 and taken the benefit of EPCG scheme, got exemption from Basic Customs duty and Cess under the scheme. But in F.Y.19-20 the conditions of export obligation were not fulfilled and the Assessee has to pay Customs duty of 1,12,00,000/- along with Interest of Rs.67,20,000/-.
My questions are,
1) Is that interest amount of Rs.67,20,000/- allowed as expenditure under Income Tax Act.
2) Can I Capitalise the Customs duty paid in the 4th year, if so as per which provisions of PPE as already Asset was put to use 4 years back.

Dear Sir,
what is the entry for freight provision, if we need to deduct freight amount due to freight bill not available with purchase invoice.
And when we received freight bill.