Dear sir,

in our client (Proprietorship) open his personal Savings bank and he transfer some amount to his current account.
in current account receipt entry 185000 amount arise
so how to pass journal entry
2) can we taken his personal saving accounts separate or taken as firms bank accounts i.,e opening with current account and savings accounts both entered in the firms accounting.

please guide me

Regards.
Ramesha.m

Dear sir,

Shop Advance paid by Proprietor it is a Deposit Assets or ....? in which head

Please specify

Regards
Ramesha.m

A Pvt Ltd company has spend 25 lakhs to installed electricity facilities in his factory shed. Out of 25 Lacs , 20 Lacs is spend for installation of poll on a land which is not belongs to company. As this is first year of operation what should company do regarding to accounting of this expenditure?

Company has no control over poll. As per agreement with MPKKVCL ( electricity provider) ownership of poll will remain with MPPKVCL.

As we are not owner hence can't be treat as an separate assets.

I don't want to classified as Miscellaneous expenditure as it will reduce net worth of company.

I have alternative but i dont think it will be correct way please comment on this:

As per AS 10 :
The cost of an item of fixed asset comprises its purchase price, including
import duties and other non-refundable taxes or levies and any directly
attributable cost of bringing the ASSETS TO ITS WORKING CONDITION for its intended use; any trade discounts and rebates are deducted in arriving at the purchase price.

If we consider above definition then we can add this cost to the cost of machinery. As without power machinery will not be able to work.

What you think ????

What is meant by word SAP...and is SAP ACCOUNTING different than TALLY..

Being a lameman how would you create a particular ledger under which head...is there any link for guiding me the same...

Journal voucher - when to use
Payment voucher - when to use
Receipt voucher when to use
Purchase voucher when to use
Sale voucher when to use

Dear all,

Please tell me:

I have purchased a monoblock pump for the first time ina manufacturing unit...i have capitalised it....after some time the motor got spoilt and it is sent for reparing...in the mean time i order for another motor and start my production....will the second motor also be capitalised of it is a repairs and maintenance cost???

A Financial Services Company (FSC) has subscribed to equity shares of an infrastructure company (company) with share subscription and share buyback agreements providing that promoters of the company or certain other identified persons shall buy the shareholding of FSC at the end of specified tenure at such rate which provides a pre-determined/desired Internal Rate of Return (IRR) on the initial investment. The aforesaid agreements also provide that the identified persons shall make payment to FSC on quarterly basis, at a specified rate on the equity investment, as interim return. These interim returns shall also be taken into consideration for determination of buyback price of shares at the end of the tenure.
These proceeds are in the nature of part payments towards specified IRR and/or share buyback. There is an inherent uncertainty with respect to the final gains/losses in such transactions, at the time of actual buyback. Please advise as under :
(i) Whether the interim proceeds can be treated as income in the year of receipt and taxed accordingly; or
(ii) Whether the proceeds are to be treated as advance receipts in the accounts and accounted for as profit on investment/capital gains at the time of buyback.
(iii) If (i) is not possible and the buyback does not take place, what would be the accounting treatment of interim receipts, at the end of the tenure – to be treated as income or to be used for reduction of acquisition cost?

Dear Sir,
Sub: Query regarding prsentation of Sale during Trial Run

Please refer to the above, recently I go through balance Sheet of Reliance Industries Ltd for the Financial Year 2011-12. As per Point no K for revenue recongnition of Significant Accounting Policies at Page No.117. "Revenue is recognised only when it can be reliabily measured and it is reasonable to expect ultimate collection. Revenue from operations uncludes sale of goods, Service Tax, excise duty and SALES DURING TRIAL RUN PERIOD."

The same above presentation of Trial Run sale done in the annual report of Uttam Galva.

MY QUERY IS THAT IF THEY ARE PRESENTING TRIAL RUN SALE WITH NORMAL SALES THEN HOW THEY ARE CAPITALISING DIFFRENCE OF SALE PROCEEDS & EXPENDITURE MADE DURING TRIAL RUN PERIOD.

IS THERE ANY WAY TO SHOW FULL SALE OF TRIAL RUN WITH NORMAL SALE AND EXCESS OF EXPENDITURE OVER INCOME TO TRANSFER TO FIXED ASSETS ACCOUNT.

Thanks & Regards

Amit Kumar

Student CA Final

How to close books of accounts of a company? What are the entries to be passed.....