naroo (accountant) (184 Points)
08 November 2010hi frndz,
pl tell me what major expenditure and income should be keep in mind while preparing P & L A/c of Marble Dealer ( person dealing in marble, granite, flooring etc )
what should do or what should not?
pl help me.
tnx to all for helpinggggggggggggggggggg
naroo
Devendra
(Chartered Accountant)
(4775 Points)
Replied 08 November 2010
A ) The major part of Income earned by the dealer includes:-
1) Sales Receipts (Marble, Granite) ( Trading A/c)
2) Fitting Charges received. ( Trading A/c)
3) Any Discount received. ( Trading A/c)
4) Any Miscellaneous Income. (Interest, Commission) ( Trading A/c or P & L A/c, depending on nature of income)
B) Payments / Expenses would include:-
1) Wages to Labour towards fitting of marble, granite. (See that TDS is deducted on such payments. TDS under sec.194C) ( Trading A/c)
2) Freight Charges ( Trading A/c)
3) Hamali Charges ( Trading A/c)
4) General Shop Expenses ( P & L A/c)
5) Telephone Expenses ( P & L A/c)
6) Electricity Expenses. ( P & L A/c)
7) Statutory Payments (VAT/Sales Tax) ( Trading A/c)
8) Audit Fees ( P & L A/c)
9) Accounts Writing Charges ( P & L A/c)
10) Discounts Allowed to customers ( P & L A/c)
11) Petrol Expenses (For Transport of Material) ( P & L A/c)
12) Depreciation on Assets owned by the Dealer in respect of Business. ( P & L A/c)
13) Interest towards Loan borrowed from Bank. ( P & L A/c)
14) Bank Charges/Commission, if any ( P & L A/c)
15) Purchase of Stock. (Trading A/c)
Note: 1) Do not debit any Personal expenses of the Proprietor/Partner to P & L A/c is it will be disallowed. These expenses are not related to business.
2) See that TDS is deducted on payments made, otherwise expenses will not be allowed as deduction. (Refer TDS Char for this.)
Wish You Happy Diwali.. !! Enjoy!!
Regards,
Devendra . K
CA Lokesh Pokharna
(CA (Ahmedabad Bhilwara Chittorgarh))
(4128 Points)
Replied 08 November 2010
good reply /suffcient reply by devendra
A K Agarwal
(Partner)
(22 Points)
Replied 12 June 2015
Hi friends
One of my client is having residential flat as fixed asset. The company is earning rent on that residential flat but it is not providing depreciation on it on the plea that the asset is in the nature of investment and there is no depreciaion in the value rather its value has increased as per the rates prevailing in the market. A note to this effect has been given in the notes of account. Please suggest if this practice can be continued.
Ashok Agarwal
CAclubindia
