Hi All,

I have a query as to validity of the following accounting entry which is made in regard to purchase of service.

Expense A/c Dr (Amount of invoice)
Party A/c Cr (Balancing figure)
Service Tax Cr (invoice amount*75%*12.36%)
Tds payable Cr (10% of invoice amount)

My query is whether service tax payable as shown in this entry correct?
The amount of service tax as booked in the invoice is only 25% of the actual expense.
Also,in this entry no cenvat credit has been taken of such 25% Service tax as shown in the invoice.


Thanks in advance

i am a manufacturer and my product is a powder which packed in plastic bags,which is purchase from traders.

last my debtors has give me debit not which is for plastic bags which i have sent him by sales as scrap with VAT amount.

how to do entry of debit note in my accounts if don't purchase any bags ?


thanks

please let me know the details all about FIRC, when , why & how

dear sir

Tally ledger show difference in balance as 23793.38 and party ledger as per balance closing 28304.89.can u give solution for closing balance adjustment

Sir,
What is the treatment of Pre- opererative expenses like salary, bank charges, R & M(other), travelling etc.
Does they b capitalize or amortize? (if these expenses are done before the commencement of production..)
then where does it should be shown in revised
balance sheet?

This is regarding the reduction of share cap[sec 100-105] in internal reconstruction.

lets take an example of a company having lost 50,000 of its paid up capital due to reduction in the value of assets...
Reduction effected in two ways:
(i)by reducing the paid up value(not nominal value) of existing shares.
(ii)by reducing both the nominal values and paid up values of shares.

ITS SAID THAT THE SHAREHOLDERS WILL NOT ORDINARILY BE WILLING FOR THE FIRST ALTERNATIVE SINCE IT PUTS ADDITIONAL BURDEN ON THEM.....

please bring out the concept behind this with an example.What is the "additional burden" being referred to here?....

thanks a ton in advance....

A company's staff gratuity is being managed by LIC. Pl clarify on the whether payment made to LIC, balance in the fund should be shown in the books of the Company ?

2. Whether Gratuity Trust creation is a must. What transactions are to pass through the Trust Accounts.

2) THE UNDERLYING ACCOUNTING PRINCIPLES NECESSITATING AMORTIZATION OF
INTANGIBLE ASSETS IS /ARE

A) COST CONCEPT
B) REALIZATION CONCEPT
C) MATCHING CONCEPT
D) BOTH OF A AND C ABOVE

1) X LTD SET UP A NEW FACTORY IN THE BACKWARD AREA AND PURCHASED PLANT
FOR RS 500 LACKS FOR THE PURPOSE. PURCHASES WERE ENTITLED FOR CENVAT
CREDIT OF RS 1O LAKHS AND GOVT. ALSO AGREED TO EXTEND 25 % SUBSIDY FOR
BACKWARD AREA DEVELOPMENT. DETERMINE THE DEPRECIABLE VALUE OF OF THE
ASSET

A) RS 500 LAKHS
B) RS 392 LAKHS
C) RS 400 LAKHS
D) RS 390 LAKHS

Dear Experts,

1) If in case of assessment AO disallow some expenses debited to P&L 3 years back, then what will be accounting treatment ?

2) If AO adds some income at the time of assessment, then what will be accounting treatment ?


Thanks.