Dear Experts,
Require ur immediate reply...Very urgent Sir!!!
For a first year incorporated company we are finalizing the audit.
For AS - 22 calculations i have done the following workings. Please tell me whether i am correct or not. Because of this i have not yet said to my senior that the audit has been finalized.

Closing wdv balance of Fixed Assets as per Companies Act - 60,00,000
Less: Closing wdv balance of Fixed Assets as per Income Tax Act - 50,00,000
Difference in balances = 10,00,000
Note:
(1)This is due to difference in depreciation amount. In Income Tax act we are claiming more depreciation amount than companies act. Therefore Tax Profit is less than Book Profit, consequently we are paying less tax now which we have to pay at a latter point of time, thats why we have to create DEFERRED TAX LIABILITY.
(2)It is assumed that there is no amount disallowed u/s 43B.



Deferred Tax Liability to be created - 10 lakhs * 30% (no surcharge or cess since less than one crore income) = 3 lakhs.

First Entry - Booking the expense and creating liability:

DTL* (P&L) A/c Dr. 3 lakhs
To DTL (B/s) A/c 3 lakhs
(Being the amount of Deferred Tax liability which we have to pay in later years for which currently booked as expense and corressponding credit (i.e. liability) is being created)

* Instead of DTL (P&L) we may also term it as Tax Expense

Second Entry - For transferring the expense into P&L a/c:

P&L A/c Dr. 3 lakhs
To DTL (P&L) A/c 3lakhs
(being the amount of Deferred Tax transferred to P&L account for the year ended 31.3.2010)

Please inform me whether i am correct or not in this regard.

With regards,
Rajesh.

sir,
in consolidation what is the concept of pre acq. profit & post acq. profit?
why in Analysis of profit we seggregate pre profit also into holding and minority intrest. plz suggest in simple way i m so much confused with this concept.

Dear Experts
I am working is a firm we import goods for trading and some times we use depb for custom duty paid. we purchase depb and passed
these journal entry
Purchase a/c dr
vat a/c dr
to creditors a/c

and we do nat pass any entry that show we use DEPB for paid custom duty

please tell me the journal entry in these situations

1 when we purchase DEPB licence
2 when we paid custom duty

please reply

sir

When a director recd. Commission from co. And he is not an employee of the co., he can show this income either as other sources income or business income

Now, my question is how can a director show his income as business income & if he is showing then what kind of expenses he can claim as deduction ?

In case Travel Agent Books Hotel & make Invoice including Hotel Room Fare without disclosing his Service Charges
What will be the turnover in case of Income tax & how to make entry
Ex Room rent Rs5000/- and Travel agent make invoice of Rs 5300/- what will be the turnover and entry for the same
Give some case law , reference if available

Fixed Assets put to use in one accounting year at a foreign exchange rate but the payment for the same is made in the next accounting year at a different foriegn exhange rate as the foreign exchange rates changed - please suggest the accounting treatement for foreign exchange gain or loss as per accounting standard

Dear Experts,
For Ex. Sale date on 1st Feb. 1000 $ at 40 per $.
Credit period 3 months.
On balancesheet date 31st March per $ =Rs.42
On 30th April when 1000 $ are received one $ = Rs.40.5
We have to credit Rs.2 per dollar totally Rs.2000 to foreign exchange difference a/c then the foreign exchange difference a/c will be transferred to P&L a/c.

Now my doubt is even though i have transferred to p&l a/c Rs.2000 my actual profit on the forex is Rs.500 only. What to do this notional profit of Rs.1500, why i have to pay tax for this Rs.5000?
Another doubt is again on 1st April should i have to reverse the profit of Rs.2000?
Please explain me...
With regards,
Rajesh.

My case is

THe company replaced the factory premises with Cement roads in the place of tar roads.

The management is arguing tat this expenditure is to be charged to revenue.

But in my opinion the expenditure incurred increase the life of the asset. so the expenditure is to be capitalised

whether my opinioni correct or not? if yes or no,provide me answers with necessary case references as soon as possible

Thanks in advance

Sarath

X applied for 150 shares and 100 shares alloted to him. FV Rs. 10.
Issue Price Rs. 12 per share {Rs. 2 App., (3 on Allot. + Rs. 2 on Securities Premium due at d time of allotment) Rs. 5 on First

In AS-4 events occuring after the balance sheet date is adjusted if it is adjusting event . Satutory obligation is mandatory to adjust in financial statement.eg Dividend.payment of fee of registar of companies is also adjustable in finacial statement ?