two methods
 reducing balance method and 
straight line method
an example will make it clear.suppose a plant cost rs 10000 
and its life is 10 years then in straight line method depn 
will be 1000 for each year.
on the other hand in reducing balance method if we assume 
that rate of depn is 10% then 
1st year depn = 10000 *10% = 1000
2nd year depn = (10000-1000)*10% =900
3rd year depn = (9000-900)*10% = 810 and so on

It  have 10Methods i will tell u

DD PAYABLE ALL BRANCHES FOR INTERSTATE & PARTY ACCOUNT 
DEBIT NO ANY CHANCE FOR BOUNCEING , PAY ODER MADE ONLY 
DELHI (NCR ) THAT SAME CONDITIONS AS DD & CH.PAYABLE ALL 
BRANCHES AS

Demand Draft (DD)- Can issue for anywhere in India.The main 
benefit of dd ,it could not be bounced.& loss,once we 
issued the dd one can not stop it that means 100% gauranty 
of payment.

Pay Order (PO)- Can issue for a limited states like 
NCR.same benefits/losses as above.

Cheques- can issue to anyone.

Hi, 
DD (Demand Draft) and Payorder of the same nature and 
cannot be bounced with the financial reasons (or made stop 
payment) as the value of the instruments was received 
already by the Bank. The difference between this two is 
Payorder would be issued in the CITY only. DD can be issued 
on the other city.

Cheque can be issued to within the City or other than that 
city. Cheque can be returned with the financial reasons.

Prepaid Expenses A/c .... Dr  20,000/-
  to Bank A/c ............ cr 20,000/-

Rent Advance A/c...Dr   20000
  to Bank A/c......              20000

RENT Advance A/c ...........Dr    20000
    To Bank A/c ............cr    20000

Advance Rent A/c             Dr.       20000.00
      to B A/c                             20000.00

Answer 
         DR     Prepaid Expense(Rent)   20000.00
               CR  Bank                     20000.00

in Mr. A Account


Rental Advance A/ac Dr  20,000
To  Cash                         20,000

1st Month the entry will be

Rent Expenses A/C Dr     6,666.67
To Rental Advance A/c              6,666.67

Second Month the entry will be

Rent Expenses A/C Dr     6,666.67
To Rental Advance A/c              6,666.67

Last Month
Rent Expenses A/C Dr     6,666.67
To Rental Advance A/c              6,666.67


Rental Advance A/cLedger Account

To cash                     20,000
 
By Rent expenses 1st month             6,666.67

By Rent expenses 2nd month             6,666.67

By Rent expenses 3rd month             6,666.67

Balance                     20,000      20,000

the rental advance will be nil at the end of last month..

In rent expenses Ledger

To Rental Advance due 1st month 6,666.67

To Rental Advance due 2nd month 6,666.67

To Rental Advance due 3rd month 6,666.67

G Total                         20,000.00

Prepaid Rent A/c Dr 20000
to rent A/c Cr            20000
(Being paid Against advance rent )This is a JV Jv is come 
When non cash related here we r give cash cr when the month 
is come
 Rent A/c Dr 6666
To cash A/c       6666 
(Being cash Paid Against Rent)

PREPAID EXP   A/C  DR    20000
                                
      TO BANK A/C

(BEING PREPAID RENT PAID )

TDS will be deducted when the payment made is above the 
ceiling prescribed. In the question u have not mentioned 
what is the nature of the transaction is.. For the 1st 
timers also u need to deduct the TDS if ur following manual 
system of accounting . If ur following a computerised 
system then u'll come to know the next time the payment is 
made else if subsequently u made a payment which together 
with the previous one exceeds the limit then ur liable to 
deduct and it will be a mistake on ur part if u've not 
deducted TDS. 

So for precautionary measure it is advisable to deduct TDS 
at the 1st time itself and u believe that there is a scope 
of future dealing with the client.

For deduction of TDS 3 things are very important.
1. Nature of transaction
2. Nature of Service
3. Amount paid or payable.

There is no TDS on transactions involving purchase of goods 
or assets. 
The rate of TDS depends on the nature of service bought.
There is seperate cieling limit for each type of service. 
for example in the case of professional services the limit 
is Rs 20000 and for contractors it is Rs 50000. 

In the present case assuming A is service provider, therate 
of TDS depends on the nature of service and ofcourse if it 
exceeds the cieling.

The frequency of transactions or the quantum of 
transactions are irrelevant for the purpose of TDS.

Further TDS has to be made upon the earlier of payment or 
credit and should be deposited with the authorities 
subsequently with the time limits.

According to Section 194I Tds for Rent payble to Companies 20% plus IT and Addl.Cess.  Similarly rent payble to Individuals and Firms TDS Rate is 15% plus IT and Cess.

If payment up to 1 cror. than 20.60%
If more than 1 cror than 22.660%


Trilok Sharma
(Vigneshwara Developers)

RENT FOR PLANT & MACHINERY:
If payment up to 1 cror. than 10.30%
If more than 1 cror than 11.33%

RENT FOR PLANT & MACHINERY:
If payment up to 1 cror. than 20.60%
If more than 1 cror than 22.66%



Satish Kumar Jha
(Manager Accounts-ABCI Infrastructures Pvt. Ltd., Delhi)

15% whith applicabe education cess& higher education cess

The tds rate for rent of company is now 10% only + 
education cess i.e 3% (Total 10.30%) from 1st oct. 2009

Balance sheet is Nothing but to know the income and 
expenses of the company. if the income is higher in the 
balance sheet company is in good fianancial position. if 
the company is in higher in expenses side then company is 
in loss

balace sheet is the financeial position 
How to know the financial position of the company in 
balance shhet?

Balance sheet is statement, which contains Liabilities and
Assets which shows the financial position of company for a 
particular date or time. 

By observing the Application of money and sources of money.

Balance Sheet is the statement prepared on a particular 
date, which shows the position of company in terms of 
Assets and Laibilities of the Company on that date.
Financial position of the Company from the Balance Sheet 
can be analyse by calculating Net Worth (Sharecapital + 
Reserve & Surplus), current Ratio (Current Asset-Current 
Laibilities).

In cash flow statement only deal with cash transaction and 
its mainly related to currant assets and current liabilities

a cash flow statement is concerned only with changes in the 
cash position while a funds flow analysis is concerned with 
changes in working capital position b\w two balance sheets

Accounts= Accounts is basically maintaing the books of 
accounts and clearcal work.

Finance= Finance has the major exposer in camparision to 
the accounts. in finance include the account fuction also, 
formulation the company policy implement of the new policy 
to maxmize the company wealth by using finance tools and 
techniques

finance starts when account part ends, accounting part
includes clerical work where as financial part includes fund
management and decision making etc..