QUESTION 1

A newly set up Private Company has incurred the following expenditure during construction period..Please classify as Capital or Revenue:

Sundry Expenses such as stationery , Printing, postage, telephone & local conveyance.

ANSWER IN PADUKA PUBLICATIONS

They constitute an expenditure indirectly which is indirectly related to construction & HENCE capitalized..

IS THIS CORRECT??

QUESTION 2

A minor fire occurred to a machinery cost of repairing is 5000/- estimated.
But company instead used new technology to replace burnt part with new part which will increase efficiency..total cost 50000/-

ANSWER IN PADUKA PUBLICATIONS

Entire 50000 should be capitalized.

I feel only 45000(50000-5000) should be capitalized.

Please assist.

Thank you


K R Srinath

One of our client has develop
their web-site

web site exp amt rs 20000
how to treat it ?

Capital of Revenue Exp

a person who is in a part time job & part time practice,can be appointed as a co. auditor?

a person has a valid certttiicate oo prctice, but he is engaged in a full time job then can he be appointed as co auditor?

i paying rent on new premises since may 2010 and i will start my business in the same premises in the month of april 2011. can i have to take the rent into prior period expenses or keep in sunderies as i have not stated business and generation of income.i have to capitalised the paid rent in the financial year 2010-11.

pl. advice

Respected Sir,
I have a pan no. and I have three business on my PAN no. each business turnover is 20 lakh per year. Can I liable for Audit.

Hi

We brought some steel plates and pipes for construction of our building. Its is under CWIP (i.e. Fixed Assets)

Now there was some scrap generated out of above materials which we purchased for construction of fixed assets.

Now i want to know whether this scrap income of bought for assets should be reduced from cost of CWIP or it should be shown as scrap income in Profit and Loss A/c

Please send link / document reference also, if possible

Hi,
one of our client's have intangible assets appearing in there financials. the same was acquired in 2004 and is now fully amortized, but still they are showing it at gross value less full amortization i.e. @ nil value.
are we still required to show it in financials?

What is the exemption limit U/S 44AB i.e what turnover required for buisnessman & for the professional for compulsion of statutory audit in the Budget 2011-12.



Manish Sarawgi
Cost Accountant

What is SQC in audit?

Can any one say the % of weightage assigned to each category of Loans/Advances for Credit Risk Capital Consideration?

Thanking You