Inflation Dought ?

Check the following Excel file attached :-

Regards,

Devendra Kulkarni

Check the following Excel file attached :-

Regards,

Devendra Kulkarni

Check the attached file.

Regards,

Devendra

Hi,

Thanks for the info ,and we can assume that the machinery cost is after depreciation only.but i still didnt clear the dought because as per income tax the entire Rs 1900000/- is not taxable no ,then how can we debit the entire profit in machinery a/c.

Regards,

Ankit Kumar 

As far i think your confusion is how can we show a profit of Rs.19lakh when there is a profit of Rs.2lakh as per Income tax. I would like to clear that most the times there is a difference between profit as per your books and profits as per I.T. There is no problem in showing a profit in books of Rs.19lakhs.it will be like that only. I give you one more case like say if you made Cash purchase of goods worth Rs.50000 then you will not be able to treat it as expense as per I.T. as Cash payment above Rs.20000 but the same will be recorded as expense in your books.

Hi,

Thanks devenndra & Avijit for your valuable time for my query ,the only thing which i want to ask you is there any accounting standard applicable to this kya.

Regards,

Ankit Kumar