As per the Mercantile System the expenses/ income due/ accrued should be provided in the books of account. My query is that as per the RBI Guidline the interest on the Saving Bank Account should be calculated on the daily basis however in the books of the account of bank such interst is provided at the end of the month and not on daily basis. So whether there is violation of the Companies Act, 1956?

The accounting year of the finacial year ends on 31st March, on that date the finacial statement prepared. While checking the bank reconcilation statement we have noticed that some of the cheques issued by the client and remaining outstanding as on 31st March have become stale during April, subsequent to March.
Should we ask the client to reverse the cheques as on 31st March i.e. as on the date of the financial satement.

The client is of the view that the event occurs after the date of the financial statement, these need not be reversed.

One of our client is in the business of the real estate development and sale. At the beginning of the project they construct a sample flat to show the prospective customers- its nature and the area etc.

Usually after the construction of the whole flat anf handing over to the customers, this flat is being demolished. The area on which the sample flat was there is being used for other purpose.

What will be the treatment of the cost of the sample flat? It will be added to the cost of the other flats being constructed or its cost is being charged off in the revenue statement?
Client is of the view that after the demolising the sample flat some thingh is being reusable?- waht will be the ttreatment of that?

if my sales excl of vat are 39,00,000 and vat colleced is 2,93,000, so total sales incl of vat is rs 41,93,000,
then am I liable for mvat audit or income tax audit.
Vat amt & sales are both shown seperately and bifurcated at time of purchase and sales.

Confusion is :
whether in defination of sales (it includes vat or excludes it ?)

someone told that in mvat sales is considered as sales + vat, therefore I am liable to mvat audit.

But in income tax defination of sales is only sales excluding of vat collected, so I am not liable to income tax audit.

Is the above mentioned correct.

I am talking for financial year 2009-10.

PLs guide me

Thanks

I had audited the accounts of prop firm for FY 2008-09. The method of accounting is cash. However the client has appointed other auditor without informing me for FY 2009-10. As per books no fee is pending due to cash system. But in actual my fee is pending. The new auditor has also not taken my NOC. I do not know the name and address of the new auditor. Pls advise me.

Hello guys!

If there is any sort of audit programme available or check list available on DP audit, plz share the same.

Thanx

please give me some tips about audit of sales tax returns...(cst as well as vat)

Hi Experts,

Can anybody help me in determining the fx rate for converting the interest component of foreign currency loan.

Suppose ABC Ltd (having year ending 31st march) has taken loan of 100,000 GBP @ 15% 1.01.10.

Interest payable for 91 days comes to
15,000 X 91/365 = 3740 GBP

Fx as on 1.01.10 = 75.0939

Fx as on 31.03.10 = 67.8120

My question is at what Fx rate we should convert 3740 GBP for reporting in financial statements.

thanks
ZAMIR

Please tell me when it is compulsory to conduct internal and statutory audit ?
tell me the limits above which it is necessary to conduct internal and statutory audit . please provide in detail.

A company has executed a partnership deed on 30th march and doesn't pay any amount for this. how this effects the financial statement as on 31.03.2011?

How we treat this situation in financial statement? either shown as payable to partnership firm in company's books of accounts or shown as notes to accounts? whether it covers under AS - 4