pls can anyone clarify my doubt's regarding payment made for repairs and maintenance to sub contractor of Rs 40000 for single transaction who is proprietor or partnership firm. for eg XYZ pvt ltd co makes payment to sub contractor for repairs and maintenance services provided by sub contractor . I am confused regarding rates. whether 1% or 2% which one is applicable in these case.

Pls tel

Hello sir

Background :

I want to know the correct treatment of calculating 'Average Capital Employed' for the purpose of goodwill calculation by subtracting from the closing capital employed the half of profits earned during the period when the company has declared and paid dividends for the current year.

Statement:

Balance sheets of a company for consecutive two years are as follows:

                     Y1    Y2.                   Y1.   Y2

capital.       70    70    assets     100.  120

P&L.           30.    50

Total.        100.  120.                 100.   120

And profit and loss appropriation account for Y2 is as follows:

Equity dividend 50.     Bal b/d.        30

                                       Net profit     70

Bal c/d               50

Total.                 100.                          100

Note : dividend has been declared and paid

Query :

Avg. Capital employed by taking simple average of two years closing capital employed will be

(100 + 120)/2 = 110

Avg capital employed by substracting half of the profits after tax from closing working capital will be

120 - (70)/2 = 85

Please explain the difference

Thanks in anticipation

Dear Professional,

My company is a manufacturing organization. Presently no production is running in the company i.e company is in loss position, company wish to give ideal motor car to other company on hire on that the company to be receive amount, this activity was already included in object clause.

Is this income comes under Business income head ?
(or)
Income from Other Sources ?


If it is IOS, is the business losses allowed to set off from Hire income on Motor car.

Please advice me on this issue.

Dear Professionals,

My company made sales in 2014 but the debtor dose not paid any amount to the company till date.
can the company treat that amount as bad debt ? by debiting to P&L A/c
How the amount debited in P&L A/c will be closed later ?

Please Advice me regards this issue.

if we have 72000 equity share of Rs.10 Each and we have to issue out of these share 5 equity share for each Rs. 100 for clearing the arrears of Rs.18000 then what is the number of share issued & and how it is calculated

Dear All

The company bought the building 6 years ago on loan. For that provision for liability was created in the same year.
Depreciation was started to claim on yearly basis. But as on date still the loan was not repaid. Now I want to reverse the provision for non repayment because due to some circumstances no need of repay that loan amount.
Kindly someone guide me the accounting treatment.

Dear Experts

Please suggest me personal accounting software where I can keep my personal accounting entries including Share and Muntual Fund Transactions.
I wish to have software with one time payment (yearly renewal not suitable).

Thank you

Dear sir/madam,

I want to know that Professional Tax of Maharashtra State deduction from Gross Salary or Net Salary

Good Morning,
I want to know while preparing Balance sheet for a Proprietor , the payment made for LIC Premium where should it goes , is it is an investment and comes under investment under Assets. or it is a Drawing and should be capitalized every year. kindly guide us what is actual correct procedure for this accounting.

Thanks & Regards