does the raw material inventory consumption are directly booked as and when purchased or are first debited to inventory account and then consumed on accrual basis

Hi Team,

I'd a doubt with accounting treatment of PF(employee portion), LIC premium paid, PPF/NPS contribution made by a salaried person.

Whether the 'premium amount/ employee portion of PF/contribution made to Funds' needs to be shown as expenses and then add it to asset?
Or it needs to be credited to Capital account and then add it to the Asset?

Also, any interest accrued for the same needs to reported in my books immediately? If yes, then in P&L account or Capital account and then add it to respective asset? If no, then how to show the bulk maturity amount when received (what could be accounting treatment)?

I think account treatment will be different for PF portion, LIC but same for NPS & PPF?

Please take sometime and solve my query in detail with regards to all investments shown, I've been looking for this answer from long time.

Awaiting for someone to help asap. Thanks in advance.

Hello I wanted to know that can we take labour contract charges in HUF account.

There are 2 partners in a firm , one of the partner died so whether it becomes proprietorship concern now but pan is in the name of the firm, how to keep the same firm name going, does the asset becomes the asset of the existing partner, not able to understand how to go about it..
Thanks you

Hi,

Inventories are assets:
(a) held for sale in the ordinary course of business;
(b) in the process of production for such sale;or
(c) in the form of materials or supplies to be consumed in the production process or in the rendering of services.

Does packing materials such as LDPE and HDPE covers should we maintain inventory details and shown as closing stock?

Sir, I am working in a Service organization, a client deposited money into our company account for paying his fees through our account. Actually, it is not our income. How to account for this transaction in tally

What is the accounting and income tax treatment of subsidy received under MLUPY
If Subsidy Received is against Term Loan ?
if Subsidy Received is against Working Capital Loan ?

What is the treatment of trade receivable related to previous year confirmed not to be collected in current year i.e, bad debt as per Ind AS.? No provision is made in previous year for bad debt.
Weather it should be recognized as bad debt in current year profit and loss account or should prior period financial should be restated (reduce income of comparative year)?

Hello Sir,

We have raised to invoice (In Euro) to our party which is situated in spain.

Mistakenly they have initiated payment to our Holding company in United Kingdom.

Amount received in Holding Company is in GBP currency as it is situated in UK.

Our Indian books of accounts are still showing that Amount receivable from Spain Party.

What Accounting effect should be given to close this invoice from AR report ? Please guide.

In Tally prime, How to enter Freight charges under RCM? Please clarify