In an Accountancy Book by T.S. Grewal, in the chapter of Journal, there is a question: "Insurance premium amounting to ₹50,000 was paid by cheque for all the machines. Out of the premium, ₹5,000 was towards insurance of new machinery." The solution given is:
Insurance Premium A/c Dr. 45,000
Machinery A/c Dr. 5,000
To Bank A/c 50,000
Since the premium of ₹5,000 is for the new machinery, it is debited to the Machinery A/c.

So, this means it is capitalized, right!?

Now, in the same book, in the chapter of Final Accounts, there is a question asking us to differentiate certain items of expenditure on the basis of Capital & Revenue. The questions are:

1. Second-hand car was purchased for a sum of ₹50,000. A sum of ₹10,000 was spent on its overhauling.
Answer (given in the book): Both the expenditures are capital expenditures. (I don't have any issues in this).
2. Cost of annual taxes paid and the annual insurance premium paid on the car mentioned above.
Answer (given in the book): This is a Revenue Expenditure!

Aren't these views conflicting!? Please explain!

Suppose we take a loan to construct a building on 01.04.2017. Annual Interest is say ₹5,00,000. The term of the loan is 5 years. The building gets constructed by 31.03.2019. Then, Interest paid on the loan for the pre-construction period, i.e. 2 years, is capitalized. Why?

TAX AUDIT QUERY:Pls confirm in Point no. 26 of Tax Audit (3CD) - Sec-43 B of Income Tax Act, 19611. Whether Tds payable has to be disclosed2. If yes, then we have to disclose the amount TDS outstanding as on 31.03.2017 or whole amount of tds liability incurred during the year.Thanks

What is composition Scheme? and how will claim it? what is the percentage for dealer for claiming ITC?

If closing balance is zero, what will effect on profit & loss a/c i.e either profit or loss or both.

What is the need for valuation of closing stock?
I mean what is the logic behind the valuation of closing stock

On 31st march, 2017 we know that Income tax rate for FY 2017-2018 would be 25%, since our turnover is less than 50 crores. At what rate we would recognize DTA/DTL in our books on 31st March, 2017, @30% i.e. taxable rate for FY 2016-2017 or @25% since that much benefit we would derive fro DTA/DTL. Please Quote relevant provision as well.

please define about HSN / SAC code , and what is the role of these codes in accounting :

When we purchase from Unregistered dealer can we get input from that invoice to redeem my tax liability In Gst

Dear sir I'm Devender accountant in one pvt company I'm recently join this company in my company not decucting TDS pay full amount to customers in financial year 16-17 how to pay and procedures please tell me