07-02-2009, 01:00 AM
i wish i could have answered the same in icap papers.
ok i getting specific now
ACCOUNTING TREATMENTS
1. Guest house is used primarily for personal purpose and once or twice in a quarter used for company purposes ( foreign guests). expenses are recorded rightly but what about the assets.
2.is it right to wholly capitalised all those assets (air conditioner,electrical equipments. furniture,land,building in company books.As they are not used specifically for company purpose should we make the following entry Capital Debit Fixed Assets credit.
3.If it is right to wholly capitalise those assets then why only guest related expenses are charged to accounts.other running and maintenance expenses paid by the directors personally should also be charged to company.
4. Lastly if asset is capitalized then how it is probable that future economic benefits will flow to entity..
TAX TREATMENTS
1. Would accomodation or housing provided along with other property and perquisite be treated as salary of director. or
2. proportionate depreciation will be claimed u/s 22. if proportionate depreciation is claimed then how will u determine the proportion used for business and for personal purpose.
3. and lastly what will be the treatment expenses.which expense will be allowable.
i hope members will get my point now.
ok i getting specific now
ACCOUNTING TREATMENTS
1. Guest house is used primarily for personal purpose and once or twice in a quarter used for company purposes ( foreign guests). expenses are recorded rightly but what about the assets.
2.is it right to wholly capitalised all those assets (air conditioner,electrical equipments. furniture,land,building in company books.As they are not used specifically for company purpose should we make the following entry Capital Debit Fixed Assets credit.
3.If it is right to wholly capitalise those assets then why only guest related expenses are charged to accounts.other running and maintenance expenses paid by the directors personally should also be charged to company.
4. Lastly if asset is capitalized then how it is probable that future economic benefits will flow to entity..
TAX TREATMENTS
1. Would accomodation or housing provided along with other property and perquisite be treated as salary of director. or
2. proportionate depreciation will be claimed u/s 22. if proportionate depreciation is claimed then how will u determine the proportion used for business and for personal purpose.
3. and lastly what will be the treatment expenses.which expense will be allowable.
i hope members will get my point now.
