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 ?

Hi, Can someone give the examples of tangible & intangible current assets & not fixed assets? Will debtor, cash at bank be an intangible asset?

Business: Clearing & Forwarding agent
total receipts > Rs. 40,00,000
very low margin on receipts
comm. income ranging between 4 to 5 lacs
should i treat the diff between receipts and payments as commission ?

My client receives exemption in Sales Tax based on the salary given to the staff for first 5 years of company in existence.

We get the amt. of exemption after 5 years completion.

Now, on year end, the position is that we recd. grant of say Rs. 100 and take set off in Sales tax for Rs. 40 and balance Rs. 60 still stands in VAT Receivable A/c (Govt. Grant).

What is the proper accounting treatment at the time of getting Exemption or Grant , at the time of monthly set off with VAT Payable . How to show Grant in Financial statements?

Basically, I am confused whether it is a revenue grant or capital grant.

Hi,

I wanted to know the gratuity provision to be made in case of following

Company is in the business of manpower supply. so it has to take employees on its payroll. for those employees, company enters into an agreement with the customer that at the time of their retirement, if gratuity is payable then it will be fully reimbursed by that client. Now at the time of making provision as per AS 15, how the provision will be calculated. Company has to provide for its core employees which is ok. but for reimbursable part what treatment should be given in the accounts

Dear Experts,
I have put this query sometime before too..but it is not being replied thats why i have again posted here because that question may not be viewable now by the experts.

Please tell me how i have to pass while entering in a Forward Contract and honouring that forward contract.

With regards,
Rajesh

I am receiving Commission for achieving target for every month on last day of month through Credit Note and amount is adjusted with my invoice value. So please tell me how do I passed journal entry in the books of A/c.