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
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.