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In what circumstances is a capital lease a better alternative to an operating lease and under what circumstances is a clapital lease a better alternative than buying an asset?
1) When you do not need a current tax deduction, a capital works better, you can take depreciation over the term of the lease. 2) You buy a appreciating asset and lease a depreciating asset, A capital lease is better with a depreciating asset. http://www.equipmentleasing101.com
Your capital is your major asset and so should be shownas an asset on the balance sheet?
It is the basic concept of accounting that business is a separate entity from it's owner. So when owner invest capital in business its now the liability of the business to return back that amount of capital to owner of business at the time of liquidation of the company that's why it is not asset but liability of the company and shown under liability side.
how to record capital lease entry?
Journal entry to record capital lease in books of accounts: [Debit] Asset under finance lease xxxx [Credit] Liability under finance lease xxxx And after that asset will be adjusted against depreciation while liability will be adjusted against lease payment till the end of term.
is capital considered owners equity or an asset?
Capital is the amount contributed by company's owners toward company that's why it is a liability of company to payback on occasion of dissolution that;s why it is treated as owner's equity and comes under liability side of balance sheet and not as an asset of company.
Are treasury stocks a debit or credit?
Treasury stock is contra account for share capital account so as share capital has credit balance treasury stock has debit balance and shown as an asset under balance sheet.
What is capital work in progress?
Capital WIP is referred to as Assets under Construction and are represented by a specific Asset class. It is an asset on the balance sheet that is not considered to be a final product, but must still be accounted for because funds have been invested toward its production. It is thus a work that has not been completed but has already incurred a capital investment Usually depreciation is not charged on Capital WIP. Following are some examples of capital WIP: - A machinery under installation - A building under construction
In what circumstances is a capital lease a better alternative to an operating lease and under what circumstances is a clapital lease a better alternative than buying an asset?
1) When you do not need a current tax deduction, a capital works better, you can take depreciation over the term of the lease. 2) You buy a appreciating asset and lease a depreciating asset, A capital lease is better with a depreciating asset. http://www.equipmentleasing101.com
How do you calculate Capital Gains in India for Income Tax purpose?
There are two type of capital gain. The procedure are given below- Procedure to calculate short-term Capital Gains. The computation of capital gains depends upon the nature of capital asset transferred, i.e., short-term or long-term capital asset. Tax incidence is higher in case of short-term capital gain as compared to long-term capital gain. The procedure for computation of short-term capital gain from the assessment year 1993-94 is as follows: Step 1- Find out the full value of consideration. The expression full value means the whole price without any deduction whatsoever and it cannot refer to the adequacy or inadequacy of the price bargained for, nor has it any reference to the market value of the capital asset, which is subject matter of the transfer. The consideration for the transfer of the capital asset is what the transferor receives in lieu of the asset he parts with, namely money or money's worth. Step 2- Deduct the following: 1. 1. expenditure incurred wholly and exclusively in connection with such a transfer 2. cost of acquisition 3. cost of improvement Step 3- from the resulting sum deduct the exemption provided by sections 54B, 54D, 54G and 54H Step 4- the balance amount is short-term capital gain Procedure to calculate long-term capital gain. Step 1- Find out the full value of consideration. Step 2- Deduct the following: 1. 1. expenditure incurred wholly and exclusively in connection with such a transfer 2. indexed cost of acquisition 3. indexed cost of improvement Step 3- from the resulting sum deduct the exemption provided by sections 54, 54B, 54D, 54EA, 54EB, 54F and 54G Step 4- the balance amount is long-term capital gain In case long term capital gains is covered by section 115AB, 115AC or 115AD, it is taxable at the rate of 10%. Deductions under section 80CCC to 80U and rebate under section 88 is not available in respect of long term capital gains.
What side of journal entries do revenue and capital expenditures go?
revenue is shown under credit side of income statement while capital expenditures are shown in balance sheet and shown under asset side.
Your capital is your major asset and so should be shownas an asset on the balance sheet?
It is the basic concept of accounting that business is a separate entity from it's owner. So when owner invest capital in business its now the liability of the business to return back that amount of capital to owner of business at the time of liquidation of the company that's why it is not asset but liability of the company and shown under liability side.
how to record capital lease entry?
Journal entry to record capital lease in books of accounts: [Debit] Asset under finance lease xxxx [Credit] Liability under finance lease xxxx And after that asset will be adjusted against depreciation while liability will be adjusted against lease payment till the end of term.
is capital considered owners equity or an asset?
Capital is the amount contributed by company's owners toward company that's why it is a liability of company to payback on occasion of dissolution that;s why it is treated as owner's equity and comes under liability side of balance sheet and not as an asset of company.
Causes for changes in working capital?
Working capital is treated as current asset and its shown in the asset side of the balance sheet under the heading Current assets. so as you know current assets are called as current assets because they are not fixed and trasnsferrd into one form to another wasily.
Does a laptop count as a tax-deductible purchase?
Certainly not if for personal use. If for business, it may be a capital asset and depreciable or expensable under those rules.
Are treasury stocks a debit or credit?
Treasury stock is contra account for share capital account so as share capital has credit balance treasury stock has debit balance and shown as an asset under balance sheet.
Why do amount for vehicle appear under non current asset and current asset?
Because it's a fixed asset
What does trustee's objection to exemption mean in a chapter 13?
The trustee is alleging that an asset you claimed as exempt from attachment by creditors actually is not exempt. It would mean that the assets would be counted toward the requirement that you contribute all of your disposable income to payments under your plan.
