I m an Auditor for a Society which is running Educational Institutions, There is uncertainity of Incomes, as the Students wont pay their Fee as and when it is Due. Thus considering the concept of Prudence, can i suggest to Account Receipts on Cash Basis and Expenses on Accrual basis??

To get Exemption U/s.12A, entity has to apply 85% of the receipts for charitable purpose. Thus if the organisation doesn't receive real Income in cash and Accrual entry is passed for Student fee receivable, from where should it satisy the 85% condition??

Early clarification is highly appreciated. Thank you

Is fixed assets account maintained in cash system of accounting ? If yes, then the entity has purchased a fixed asset for 14,00,000 and paid only 8,00,000 for it.. will the asset be capitalized with the full amount ? and shown the rest shown as a liability.. but wont this make it accrual system then ? .. please help.. and please explain in detail ..

Dear sir,

one person has having sole proprietor firm , he purchased car and house in his individual name .But he took bank loan against this, he is remitting the installments through proprietor firm ac . where can i show the interest on loan and principal amount and can i capitalize asset in proprietor concern

kindly give us the solution of my query . it is more helpful to me

A builder plans to asset(building) of Value Rs 50 lakhs(market value).
The people residing in the building does not accept to vacate for which the builder pays Rs 20 lakhs as settlement.

How should Rs 20 lakhs be accounted for in the books? What kind of costs are they?

Can an individual assessee show his Life insurance policy in its balance sheet?
If yes, then at which value.

i am giving attempt in may 2013of ca final 1st group,in account paper 1 question for 8 mark which can be solved by 2 way,i am solving by 2nd way but in Practice Manual solved by 1 way can we get mark?2nd way not in practice manual,final answer is diffrant,because 1 item which can be adding 1 or 2 group,then answer change,other remain same.please reply

i am giving attempt in may 2013of ca final 1st group,in account paper 1 question for 8 mark which can be solved by 2 way,i am solving by 2nd way but in Practice Manual solved by 1 way can we get mark?2nd way not in practice manual,final answer is diffrant,because 1 item which can be adding 1 or 2 group,then answer change,other remain same.please reply

I have one assets it's salvage value in mybooks of accounts is rs. 5,00,000 ,(5% of cost value ) but where it is we don't know so my director want to remove this assets from books of accounts so now my question is what is the journal entry should be passed in books of accounts ....

hi friends

Software (tally) purchased for the organization purpose .

as per amendment is it Revenue / Capital expenditure.

Software installed in office is this cover under new amendment ???

One my Client have negative cash during some months of previous year because of negligence of Accountant, the reason is because they pay salary in cash , Please suggest me how can I make that positive