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+--- Thread: how prepare trading account under such criteria (/showthread.php?tid=9920)
how prepare trading account under such criteria - lallykejan - 05-28-2011
i m an accountant appointed at behria town. in year 2007 our company purchased 842 marlas of land on installment by paying 9100000 in first year and 70,00000 in second..now in first year 2007 company's sales and cost detail is.
sold 452 marlas on installments and total revenue collected is 3500000. cost paid first year is 9100000 and other direct expenses were commission for purchase 200000 + registry 300000 + development cost 500000 while possession of all 842 marlas is taken and when calculating inventory/closing stock as 390 marlas are in stock how i will evaluate per marla cost? as for paying tax i have paid 9100000 only in first year while calculating inventory what cost i will take to find per marla cost?, total of 91+70,00000 + development cost + commission + registry?
when i will go in scond year closing stock of 390 marlas is ther lets say it is 1000000. further in second year development costs were added to land and 7000000 were paid for land now how they will effect in second year? as opening stock + cost paid in year 2 700000 whould't it be doubled while valuing stock?...please guide me thank you
- danishayub_76 - 05-30-2011
Dear Lallykejan. Try to Ask the essence of the question in few words. Its too lengthy to give you detailed answer ).
regards
- danishayub_76 - 05-31-2011
what the f*** you are MR.Newlife.
- Dard - 06-01-2011
Lally it would be better if you add paragraphs and better details. You can communicate in urdu if explaining in english is difficult.
- lallykejan - 06-01-2011
year 2007
we purchased land for totaling 16000000. and paid cash rs.9000000 remaining were paid in second year 2008. total land was 842 marlas. other development cost we paid in year 2007 were of 500000. commission on purchase of land was paid for 200000. registery expenses paid were of rs.100000. out of 842 marlas 452 marlas are been sold on installment totalling the revenue(cash receipt) of 3500000. now thing is am to prepare the trading account for tax purpose not from accounting view point so i am to use cash basis of accounting system? how will i value stock on hand for the year 2007 please prepare me a trading account keeping in view of tax basis..