need urgent help

hey how will it be possible,if u have shortfall on debit side u will debit suspense account,and when u  find out the exact reason it will either be an asset or an expense,how can a debit side item can be be liability or income. Same is the case with credit side..

In a hurry  to Close the books of accounts for the period, we just closed and adjust the not tallied balance to SUSPENSE A/C. To be frank by that time it doesnt show correct profilt or loss why because if it is debit balance in suspense A/c Profit will decrease and Viceversa. Definitely there will be an impact in Profit/loss A/c.  Upto my knowledge there are no steps to be taken by that time, We will pass the adjustment entries only after completion of our analyzation on suspense A/c after that period.

Hello friends, Please let me know if anything is wrong in my thought.

Thank you.

Dear radhiks please tell me difference in debit side or credit side?????????

but i agree with A student

Please tell me Conversion Charges paid for Converting Milk into Milk powder are applicable for deduction of TDS .....And what percentage will be applicable

Hi friends

I want to know about Deffered Tax  and It is Asset or Liability and  what is contingent Liabilities.

Thanks in advance for the reply of my question

can I purchase a fixed assets in cash more than Rs 20000.00 in a Prop. firm or Partnership firm.

What is Sale in Transit against Form E1

Hi Kanhaiya,

Ur question belongs to sec.40a(3). what that section says that cash payments more than Rs. 20,000. If u purchase anything more than 20,000/- then u cannot get that expenditure as deduction either in partnership or proprietor ship.

The main reason behind of that section is to increase the banking.

Hi All,

I think Radhika's Question got lost and other discussion started.

Radhika, First of all the difference int he trial balance will never be transferred to the Profit & Loss A/c.  It will always have to be shown in the Balance sheet (whether it is a Debit balance or a Credit Balance it has to be shown in the Balance sheet only).

Further, one can not decide what impact will it have on the profitability of the company unless the real nature of the transaction is identified.

It could be possible that,  A cash payment to the supplier was not posted to the supplier account hence there will be a difference in the trial balance.  In this case, there won't be any impact on the profitability of the company.  the difference is adusted from the Sundry Creditor's balance and the net amount will be shown in the  balance sheet.

Similarly, if the cash is paid for any expenses for the company and it has not been posted in that particular expense account, the difference in the trial balance if shown in the Balance sheet will not reflect the true profitability of the company.  Hence upon identifcation, the same will be debited to the P & L A/c.

However, if the difference in suspense was identified only after closing the financial year (Books), then the same will be reflected in the account as Prior Years Adjustment A/c.

Hope, I was able to explain it clearly.  If any one have any different opinion, please feel free to correct me.

Thanks in Advance