Dear Freinds ,
In many of the companies , in some sitiutation the company is suposed to pay Bribe to get the work done in time. And my Doubt is how to treat that amount while accouting.
Mahesh Lahoti
(B.com Hons C.S Professional Programme)
(1311 Points)
Replied 07 February 2011
ignore the amount
thats it!!!!!!!!!
saivarma
(articles assistant)
(127 Points)
Replied 07 February 2011
Dear Mahesh,
If u Dont Know please ignore it, How can we ignore the company funds with out Accouting.First u must learn the accoutancy rules , each trancsation has to be accounted other wise u have to spend that amount from u r pocket.
Rohtash
(CA - Final / CS / B.Com)
(1140 Points)
Replied 07 February 2011
@ Saivarma : I can't be rite I know but wanna try.
I think 1st v shud be clear about that the particular expense is a capital or revenue, for which it shud be found out if the particular amount is paid towards the work for capital item (such as to the contractor for machinery or alike), the same can be added to the production cost of the same asset.
If the amount is paid for small items such as revenue items, then the same might be disclosed in such small cash expense where you can properly disclose such as for office work, the same can be added under the head office expenses or some other miscellaneous head.
I think the same would be helpful to u, I will also be waiting for the conclusion of the same.
Regards,
Rohtash Hurria.
Rohtash
(CA - Final / CS / B.Com)
(1140 Points)
Replied 07 February 2011
@ Saivarma : That was from the accounting point of view & not the audit.
Regards,
Rohtash Hurria.
saivarma
(articles assistant)
(127 Points)
Replied 08 February 2011
Dear Rohtash
U may Correct , But i want to know the correct answer.by some experts. Thanks For giving ur answer.
Rohtash
(CA - Final / CS / B.Com)
(1140 Points)
Replied 08 February 2011
@ Saivarma : Yea thats what I too mentioned that I m also waiting for the reply from someone senior..
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