Accounts


Avatar

Querist : Anonymous

Profile Image
Querist : Anonymous (Querist)
08 September 2014 If the company is incuring losses then what would be the treatment of Reserve?

08 September 2014 loss is transferred to reserve account and accordingly reserve account is diminished by the loss amount.

08 September 2014 Reserves account....dr
to Profit and loss a/c


Avatar

Querist : Anonymous

Profile Image
Querist : Anonymous (Querist)
08 September 2014 Parul can you give me an example

08 September 2014 Suppose loss is of Rs.100000
and the balance in reserve & Surplus is Rs.500000
Reserve & Surplus Dr............100000
To Profit & Loss.......................100000
then closing balance of Reserve and surplus is:-
Rs.400000

Avatar

Querist : Anonymous

Profile Image
Querist : Anonymous (Querist)
08 September 2014 Parul Can you tel me treatment of interest expense in banking industry and service industry are different? How and what would be the treatmentfor both?


08 September 2014 In Service industry interest expenses are simply treated as indirect expenses in books of accounts and if this interest is on account of penal interest like interest for late payment of tds then this is disallowed as per income tax act.But interest is like interest on overdraft then this is allowed as finance cost as per income tax act.

As far as Banking industry is concerned i dont have idea.

Avatar

Querist : Anonymous

Profile Image
Querist : Anonymous (Querist)
08 September 2014 Parul this was the question asked in interviews plz tel me treatment in banking industry too with somebody else help


Avatar

Querist : Anonymous

Profile Image
Querist : Anonymous (Querist)
08 September 2014 Parul tel me the treatment of interest on overdraft which is allowed as per IT Act



You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join CCI Pro
CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries