Depriciation

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Venugopala Chary (Querist)

04 May 2012 Dear Sir

1. A company vehicle has been sold out in Feb2012. can i calculate depreciation for only half year or upto the date of sale. please help me.

2. A company subscribed a chit in margadarshi chits, and we have entered only installment amount after deducting devidend in tally. this year we have been prized /lifted chit. how can i show the devidend in P & L account and balance sheet

Thanks in advance

Guest

Guest (Expert)

04 May 2012 1. As per Co's Act u have to calc depreciation till date of sale.

As per IT act the sale value is deducted from gross block (provided the block has value and other assets also).

Here the identity of individual assets is lost in the common hotchpot so we cannot recognise it separately

2. I didnt get the second question.

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

21 July 2024 To account for the dividend received from the chit fund subscription in your company's financial statements (P&L account and balance sheet), you should follow these steps in Tally:

### Step 1: Record the Dividend Income

1. **Create Ledger for Dividend Income:**
- Go to Gateway of Tally > Accounts Info > Ledgers > Create.
- Enter the name of the ledger as "Dividend Income" under the appropriate group (typically under Income - Other Income).
- Set the type of ledger as "Income" and save.

2. **Record the Dividend Entry:**
- Go to Gateway of Tally > Accounting Vouchers > F5: Payment.
- Debit the Bank Account where the dividend amount was received.
- Credit the "Dividend Income" ledger account.
- Enter the amount received as dividend.

### Step 2: Adjust Against Chit Fund Installment

Since the dividend is related to your chit fund subscription, you need to adjust this against the installment amount already recorded.

1. **Locate the Chit Fund Ledger Entry:**
- Go to Gateway of Tally > Display > Account Books > Ledger.
- Select the ledger where you recorded the chit fund installment payments.

2. **Adjust Against Installment:**
- Identify the installment entries related to the chit fund subscription.
- Reduce the installment amounts by the dividend received. You can do this by altering the original payment entries or by making a separate adjustment entry.

### Step 3: Reporting in Financial Statements

1. **Profit & Loss Account:**
- The dividend income should reflect as part of your total income in the Profit & Loss Account (P&L).
- Ensure that it is categorized under the appropriate income head, such as Other Income or Non-operating Income.

2. **Balance Sheet:**
- The net effect of the chit fund subscription (installment payments minus dividend received) should be reflected in your Balance Sheet under the relevant asset or investment section.
- Any outstanding chit fund installments should be shown separately under Current Liabilities if not fully paid.

### Additional Tips:

- **Consultation:** It's recommended to consult with your accountant or financial advisor to ensure compliance with accounting standards and tax regulations specific to your jurisdiction.
- **Documentation:** Keep clear records of all transactions related to the chit fund subscription, dividend income, and adjustments made in Tally for future reference and auditing purposes.

By following these steps, you can accurately record the dividend income received from the chit fund subscription in Tally and reflect it correctly in your company's financial statements.

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