02 July 2013
In pgbp, method of accounting is relevant for computing taxable income. so if cash system is followed, how will depreciation be treated ? and also miscellaneous expences not w/off ?
05 August 2013
In regular cash system of accounting only cash expenses incurred are to be accounted for whether it is miscellaneous or any other expenses but the following entries although no cash is involbved it is to be accounted for to arrive at the correct profit. 1) Bank Charges 2) Depreciation 3) Interest. Besides the above all expenses are to be boioked on paytment basis including the Govt. taxes and dues.
05 August 2013
In regular cash system of accounting only cash expenses incurred are to be accounted for whether it is miscellaneous or any other expenses but the following entries although no cash is involbved it is to be accounted for to arrive at the correct profit. 1) Bank Charges 2) Depreciation 3) Interest. Besides the above all expenses are to be boioked on paytment basis including the Govt. taxes and dues.
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