Question { 23371 }

what is format of Trial balance

Answer

Sri Satyaki

Thanks in advance

Question { 5896 }

What are the portions to be covered in tax audit and what
are the papers to be checked in tax audit by auditors?

Answer

All statutory compliances & its payments were tobe checked
and certified in the Tax Audit Report. Few cases as follows:
1) Tax Deduction on Payments to Contractors & Sub
Contractors - Verification of % & its deduction. Whether
the same has been paid to the Department in the subsquent
month before due date.
2) Provident Fund,Profession Tax, IT on Salary , Service
Tax, Sales Tax etc (all the Government Levies) Whether
deductions made properly in line with the Law and Payemnt
has been made properly before due date.
3) Interst,Dividend,Dividend Tax etc., also to be checked
the deduction & payment.
4) Cash payment should not be made >20,000 if so it will be
disallowed.
5) Huge cash balance should not be kept & it will leads to
wealth tax.
6) Any delayed payment on government levies will attract
interest.
7) what ever the rpovisions made earlier earlier year has
been set off to be checked.

Question { 34784 }

when does accounts receivable have a credit balance?

Answer

If the amount is received & the Sales entry is not accounted
or accounted in another customer account this balance will
be shown in Credit Balance.

Question { 13430 }

What is Subsidiary book?Explain the different Books along
with debit note& credit note?

Answer

General Ledger is the main Ledger and other ledgers are
called subsidiary books viz., debtors ledger,creditors
ledger,sales ledger,purchase ledger, journal etc.,
Debit Note - To recover any amount from the customer example
, Freight,interest & any other expenses to be
recovered.(includes Purchase Return also)

Credit Note - To give credit to the extent of its value to
the customer viz., Discount,Commission, excess charged if
any , Price difference (includes Sales Return also)

Question { 13813 }

what are the cost audit and management audit?

Answer

Evey company will have its own accounting policy including
for costing ! The ways & means to be ascertained. Basic
things to arrive cost & cost sheet to be analyzed & to be
audited whether its in line with the policy & accounting
standard. For example a Landed Cost for imported
materials/components will be arrived as follows: viz., C I F
+local transport + loading & unloading charges + exchange
Loss. in fact erection & installation charges also to be
considered in the cost sheet.In case of Manufacturing
company a "Traveling Job Card/Cost" which gives various step
by step & stages the total expenses incurred to make a
complete product to be considered & audited. Cost sheet
which gives workings for all the above is the base one for
audit.

Question { 25563 }

How to calculate service tax in construction catatory

Answer

In case of a construction sector the rule for Service Tax
applies as follows:
1) If its a commercial complex - Service Tax is applicable
2) If its a Residential complex - Service Tax will not be
applicable (provided there should not be more than 8 flats)
The calculation should be as follows:

1/3 of the work value alone is taxable @ 12.36 %

If the work value is 12.00 lacs - 4.00 lacs is turnover for
service tax.

Important note: Since 1/3 alone chargeable for tax no input
credit is allowed.

If the major materials viz., steel/cement is supplied by the
client the work value has to be derived after deducting the
above costs

Question { L&T, 7644 }

If you keep an amount for the office interior designing
purpose what is the entry?

Answer

It can be
Office up keeping maintenance a/c Dr
To Cash/Bank a/c Cr

In case if it has to be Capitalized (huge amount)

Capital Expenditure a/c dr
Cash/Bank Cr

Question { 29605 }

Difference between a pay-order and draft?

Answer

A Pay order is a banker's chq since drawn/payable locally
whereas the draft can be taken any part of the country.