Interested to Buy Any Domain ? << Click Here >> for more details...
What is unabsorbed depreciation ? how its treatment different
in taxation vis-a-accounting?
- 1 Answers
- 8278 Views
- D&B, I also Faced
- E-Mail Answers
Answer Posted / bhupender janmejai
Take a simple example -
In P/L a/c you have G.P./ Income etc. on credit side as Rs.
50,000. Depreciation during the year is say 10,000. Now
you will simply debit the depreciation and your net profit
will become 40,000 chargeable to tax.
However if the credit side remains same as Rs. 50,000 but
the depreciation is 60,000 then what will happen?
In accounting terms it will simply show a loss of 10,000 to
the firm. However in taxation terms this 10,000 will be
known as unabsorbed depreciation.
Now the assessee can carry forward this 10,000 to next years
and can setoff it against future profits. For details you
should read SET-OFF & CARRY FORWARD chapters along with
topic of depreciation in b&p
| Is This Answer Correct ? | 13 Yes | 1 No |
Post New Answer View All Answers
Other accounting interview questions to expect when you interview for an accountancy job include:
What do you find most satisfying about this job?
Interest received 5,000 and still receivable Rs. 2,000 PLease give journal entry for this!
Cheque Received From Customer What is accounting entry and in which vocher. coustomer order is 100 items . 5 items given to customer cost rs 2000 5 items Total 2000 and remaing 95 items not deliveried 100000 Cheque Received
Can you differentiate accounting and auditing?
My question is that can i taken input credit of service tax of telephone bill & courier bill & labour contractore bills in exemption Area.
how to calculate ESI,PF,PRO.TAX, INCOME TAX, VAT, T.D.S, EXCISE PLEASE SAY ANSWER IN DETAIL WITH PROPER UNDERSTANDING PLEASE SAY THROUGH WITH EXAMPLE
director wife expenses which entry
what is turn over? what is vat? what should ido to become a expert in acount? plese ans me
What is Statory Books ?
Can you help me to pass the journal entry for work in progress for a construction company? I would like to know the debit and credit for W.I.P will be under in which accounts head. Eg: debit will be in current asset a/c head, and credit will be under in which a/c in P&L? whether under purchase a/c head, or under direct income a/c head? please give me the details. Thanks for your previous answer?
The following information is extracted from the audited books of accounts of a chain of food stores for the period ended 31st December 2015. Revenue Statement (Trading and Profit and Loss Account for the year ended 31st December 2015. BWP’000 BWP’000 Sales 460 Cost of good sold (220) Gross profit 240 Wages 50 Other expenses 30 (80) Net Profit 160 Note: The purchase figure included in the cost of goods sold of P255 000. Balance Sheet as at 31st December 2015 BWP’000 BWP’000 Fixed Assets 400 Current assets: Stock 80 Debtors (trade) 120 Bank 400 ----- [600] Current liabilities: Trade creditors 300 ------ [300] 300 Net Assets 700 ==== Financed by: Share capital 600 Revenue reserves 100 ------ 700 Shareholders Funds 700 ===== Required: (a) Calculate the following accounting ratios: (i) Current ratio (ii) Acid test ratio (iii) Stock turnover (in days) (iv) Debtors turnover (in days) (v) Creditors turnover (in days) (vi) Return on capital employed (ROCE) (vii) Gross profit percentage (viii) Net profit percentage (b). Give a brief comment on the performance of the company, based on the above ratios.
Definition of push down accounting
Where do we show "Dividend paid in FFS ,either in FFO or in FFS? what is teh concept behind?
What is the revenue recognition principle?
