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Inventory account
Accountancy
answered 6 hrs ago
Sir, my understanding is that cogs is an expense we that we incurred to produce goods if it’s increasing it’s a debit , in that case why is it appearing on credit side on the stock account , and similarly closing stock is an asset why is that appearing on credit side [Video Time Stamp: 02:50]
latest answer
Entry is Closing Stock Ac Dr To trading account
Aravind V
CA Foundation
★ 0
1
5
Inventory valuation
Accountancy
answered 13 hrs ago
Sir the reason as to why we measure inventory at lower of cost or nrv is due to conservatism principle, is my understanding correct about this .
latest answer
Yes. Or prudence
Aravind V
CA Foundation
★ 0
1
1
Trial balance closing stock
Accountancy
answered on 04-Feb-26 06:46
Sir could please clarify the concept of closing reflected in tb and outside tb.
latest answer
Thank you sir
Aravind V
CA Foundation
★ 0
2
16
Trial balance suspense account concept
Accountancy
answered 2 days ago
When tb doesn’t tally ,we move it to suspense account. So do we proceed with p&l and balance sheet preparation or we need to first identify why there’s a difference in tb and pass rectification entry and then proceed with p&l and bs preparation
latest answer
In real life when we prepare accounts on ERP/Computers, the trial balance always tally. Suspense account is largely used for unidentified transactions. If the Trial Balance does not match (in case of manual accounting), you put the difference in a Suspense Account so the accounts can move ahead. You can still prepare the Profit & Loss Account and Balance Sheet even if there is a Suspense Account. This ensure that audits can start without any delay. As we find mistakes and error we rectify them before finalisation of accounts. Auditors check carefully and make sure the Suspense Account becomes zero before final accounts are accepted. Some items may not be identified.
Aravind V
CA Foundation
★ 0
1
7
Ledger
Accountancy
answered 2 days ago
For closing expenses, when we transfer to p&l do we need to pass an entry [Video Time Stamp: 05:33]
latest answer
In computerised accounting not required. In physical, Generally a trial balance is prepared and nominal accounts are not carried forward in books.
Aravind V
CA Foundation
★ 0
1
16
Treatment of Empty bottles as Inventory
Accountancy
answered 2 days ago
Sir, The Co.(Alpha Ltd.) Deals with sale of Flavoured milk, How can we consider Empty bottles in the inventory?? Of course we may have maintained separate account for them as its also An Asset, But How can it be treated as inventory??
latest answer
Those bottles are asset (given the significance in value) Since part of goods sold in ordinary course of business - treated asinventory. Think of it like Milk + Bottle as inventory. Milk sold separately and bottle sold separately
Jagadeesh Jaidev
CA Inter
★ 0
1
18
Subsidiary books
Accountancy
answered 1 day ago
Does subsidiary books and subsidiary ledger mean the same [Video Time Stamp: 00:28]
latest answer
Thank you so much sir for explaining with an example
Aravind V
CA Foundation
★ 0
3
18
AS 2
Accountancy
answered on 29-Jan-26 16:31
Sir, In almost every solution, Some descriptive answer is being written which begins with"As per AS 2.....". But most of them are not given in the concept book. What should we write?? Is it mandatory?? Where shall we refer for these explainations. Should I just practice whats been covered in the Questions of the Questions bank??
latest answer
Ok sir, Thanks a lot
Jagadeesh Jaidev
CA Inter
★ 0
4
44
Syllabus sequence
Accountancy
answered on 23-Jan-26 18:39
Sir, In ICAI Syllabus, Accounting standards are been listed and grouped under specific chapters like asset based AS's like that. Should we have to study in that sequence or As per sequence of your study material.
latest answer
Ok sir. Thank you
Jagadeesh Jaidev
CA Inter
★ 0
2
34
Adjustment of pre acquisition dividend
Accountancy
answered on 27-Jan-26 11:20
Why are we subtracting the dividend from inv a/c?
latest answer
When you buy shares, you are paying for accumulated net worth (paid up capital and reserves of the company) and of course future prospects. Now, if the company later gives you dividend out of those old profits, you are not earning anything new. You are only getting back a part of the money you paid to buy the shares. So its like a return of capital and not return on capital .
Rithu V
CA Inter
★ 2K+
1
27