SIR, A MANUFACTURING CONCERN HAS VALUED ITS CLOSING STOCK AT RS. 10.00 LAC AS AT 31.03.2012.
THE FILE SELECTED FOR SCRUTINY BY INCOME TAX AUTHORITIES AND HAVE POINTED OUT THAT THE CLOSING STOCK IS UNDER VALUED BY RS. 1.00 LAC AND THEY HAVE INCREASED PROFIT BY RS. 1.00 LAC AND TAX DETERMINED ADDING RS.1.00 LAC TO DECLARED NET PROFIT IN RETURN OF INCOME.
MY QUESTION IS IN THE NEXT YEAR OPENING STOCK AS PER BOOKS WILL BE RS. 10.00 LACK. WHETHER THE EFFECT OF RS.1.00 LAC WILL BE GIVEN FOR CALCULATION OF TAX BY I.T. AUTHORITIES IN THE NEXT YEAR OR NOT ?

what should be the accounting treatment of purchase of a plot on installment.the total purchase cost is 5500000, and in the 1st year , 1790000 was paid as installment . what should be the treatment in 1st year . should it be recognised as expense or an assets if the possession was not transferred.

Dear Sir,

Can reserve created out of upward revaluation of land & building can be credited to proprietors' capital account.

A company sends cars to dealers on "sale or return" basis.All such transactions are however treated like actual sales and are passed through the sales day book.Just before the end of the financial year,two cars which had costed Rs 55,000 each have been sent on "sale or return" basis and have been debited to customers at Rs 75,000 each.Cost of goods lying with the customers would be--
(a)Rs 1,10,000
(b)Rs 1,50,000
(c)Rs 75,000
(d)Rs 55,000

I have imported the goods of Rs.100(10 units) and paid custom duty Rs.28(As per custom Tariff) and till 31st March,2013 i have sold 8 units and 2 units are left as closing stock ,while doing valuation whether i will include the custom duty or not, I have done the valuation as under ;

Cost of goods Purchase

Basic Cost =100 (For Ten Unit)
Duty Cost = 28 (For Ten Unit)
Insurance & Freight = 8(For Ten unit)
CHA & Other charges = 5 (For Ten Unit)
Total Cost =141 for Ten Unit
Per unit cost is Rs.14.10

So unsold goods was 2 unit and valuation is 14.10 X 2 = 28.20
Please advise whether my valuation correct or I have to exclude the custom duty.

The correct sequence of the following in the preparation of periodical final statements would be--
1.Preparation of balance Sheet
2.Preparation of cash flow statement
3.Preparation of Trial Balance
4.Preparation of Profit/Loss Statement
The correct option is--
(a)4,2,1.3
(b)3,4,1,2
(c)2,4,3,1
(d)1,3,2,4

Can a Private limited Company prepare its accounts on Cash Basis

Some creditors are outstanding in our books of accounts since very long time and now i came to know that these companies are shut down...so pls advise me what should be the accounting treatment of these creditor how can i adjust them.

If a private limited company is having its business of safe deposit vaults, then in which block of assets "Safe deposit vaults" depreciation would be counted and rate?

how will I solve this problem

Q. A firm purchased a machinery on 01-04-2008 for rs.8000. the machine has been worked for 3 years. at the end of 3 years the written down value of the machinery is rs. 4096.

find out the rate of depreciation if it is charged by written down value with calculation