Preparation of statement of profit & loss for the year 2013

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ravi m. kothari (Querist)
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27 August 2013 Hello...Members & Students,
Our Co. is Power Generating Company(Public Sector Unit) and it is under Project,We people Prepare our Balance Sheet Since 2007-08 but not Prepare Profit & Loss account Since we Capitalised Our Expenditure and transfer to CWIP.In this Year Auditor ask to us for Preparation of Statement of profit & Loss Statement Compulsory. Now we People are under Confusion For Preparation of Statement of Profit & Loss for this Year & how ????? please guide us as soon as possible as we have very Short of time for Taking the Decision....

Ganeshbabu K

Ganeshbabu K (Expert)
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27 August 2013 Statement of profit and loss can be done,,if unit started its commercial operations,,means it's first bill generate
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1)transfer all CWIP to respective Assets ledgers with the date of capitalisation,,,and accordingly caluculate depreciation as per companies act with rates prescribed in schedule XIV

2)remaining admin and direct expences however it will be there in your books,,what else doubt you have

ravi m. kothari

ravi m. kothari (Querist)
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27 August 2013 till date(2011-12), we give the treatment as same as you told but now onwards statutory auditor raise the question on the basis of guidelines that we have to prepare the statement of Profit & Loss. Till date we prepare only Incidental expenditure statement and transfer all expenditure to CWIP including general & admin Charges ,payment to Auditor, repairs & maintenance etc...now onwards what steps can taken by to give the Explanations to Statutory Auditor

ravi m. kothari

ravi m. kothari (Querist)
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27 August 2013 Please give reply

Ganeshbabu K

Ganeshbabu K (Expert)
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28 August 2013 covert cwip to fixed asset,,pass entries to capitalize fixed assets
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Remaining admin expences and other expences,,let it remain in profit and loss,,
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You better take guidence of statutory auditor or take assitance from internal auditor and pass entries with his assitance
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