a journal entry worth testing your knowledge

WHY YOU GUYZ ARE DESPERATE ABOUT RUNNING AWAY WITH THE GOLD ....ASK THE HONEST ACCOUNTANT THE WEIGHT OF THE GOLD TOOOOO.......

WHY YOU GUYZ ARE IGNORING THE MATERIALITY CONCEPT

As an Honest accountant...first of all taxation of gold will come to my mind..because it'll deemed to be d income of assessee(Company) acc to Sec 69A of IT Act...as it is unrecorded in books of account..and after consideration of income,,.Investment A/c is to be debited and Capital Reserve A/c is to be credited...Correct me if i am wrong...Nahi toh Gold le ke kat le....ya to Wealth tax dede aur return bhar de..

As per contract act, if some one finds a property of the third party he becomes a bailor. I think the gold property will be of employees. He should take measure to give it bank.

If no person takes it then it becomes property of the person who took it.

SO it should be accountants, if true owner not comes........

 Is it right??

i hav different answer also

Originally posted by : sanjay kumar
	WHY YOU GUYZ ARE DESPERATE ABOUT RUNNING AWAY WITH THE GOLD ....ASK THE HONEST ACCOUNTANT THE WEIGHT OF THE GOLD TOOOOO....... WHY YOU GUYZ ARE IGNORING THE MATERIALITY CONCEPT

hahaha....Good One........Mr.Sanjay.........

hi

how will you treat this is an income or capital or other thing.

in my opinion  we might return it later who is the real owner.

so initially (if we are honest) make the entry like this

Gold A/c    Dr.

suspense A/c Cr.

if it is wrong please let me know the right.

it depends on one thing whether it belongs to the firm or it is someones personal property.if it does not belong to the firm no entry needs to passed .if it belongs to the firm and as u say the accountant is honest he will bring it to the notice and see if an entry has been made earlier for the same and hence do the needful.if  the gold does not belong to the company-the accountant can put a notice on the companies notice board(as he is honest)  so that the true owner can claim it.if the piece of gold still remains unclaimed .it can be given to charity,but in no way it will be recorded in the books of the company because it was not companies property.but proper enquiry needs to be done before its given away as charity because anyone may come to claim it from u,its better to wait for sometime.gold was found in companies premises: to wo udke to nahi aya na-------wo kisi na kisi ka to hoga hi.

(ix) ABC Ltd. developed a know-how by incurring expenditure of Rs.20 lakhs. The know-how
was used by the company from 1.4.2002. The useful life of the asset is 10 years from
the year of commencement of its use. The company has not amortised the asset till
31.3.2009. Pass Journal entry to give effect to the value of know-how as per Accounting
Standard-26 for the year ended 31.3.2009.

help on giving J/E on above......?