Preparation of statement of profit and loss and balance sheet

answered 23 hrs ago

Can anybody please explain point no 5 and 6 regarding Treatment of provision for bad debts in trade receivables

latest answer

Out of 25,000 only 25% is recoverable. Remaining 75% is bad debt. For other receivables make a provision of 2%

JAI AKASH

CMA Inter

★ 0

1

12

Accounting standards

answered 23 hrs ago

Sir can u please explain this point Applicabilty

latest answer

For company form of organisation, MCA notifies Accounting Standards For other than company, it is notified by ICAI. I have covered this aspect in video.

Leela Sowmya

CA Inter

★ 0

1

13

p&l of subsidiary inclusion

answered on 12-May-25 15:38

sir, we actually won't take subsidiary's p&l bal. while preparing consolidated balance sheet right? then why are we including it here?

latest answer

ok sir, thank you

Pooja Sree

CA Inter

★ 0

3

24

Esop

answered on 11-May-25 06:39

Is esop there in ca inter syllabus

latest answer

No

Sushmita Chowdhury

CA Inter

★ 2K+

1

27

Question 2

answered on 12-May-25 12:17

Can you please let me know how the statement of PL looks like? Tax Expense for each year should be equal to the tax on the accounting income, right? Accounting Income on the 2nd and the 3rd year will be Rs 52000 and 57000 ( 15000*35% and 150000*38%). Current Tax and Deferred Tax in the 2nd and the 3rd Year adds to Rs 57500 and 62500. Even if the flat 40% is applied, it will be Rs 60000 in each year. Current Tax+Deferred Tax will not equal to Rs 60K as Tax Expense. This is for the question 2 of AS 22- Taxes on Income. Question is If in Illustration 1, the substantively enacted tax rates for 2011, 2012 and 2013 are 40%, 35% and 38% respectively, how will be the amount of deferred tax liability computed.. Illustration 1 is below- FY ending every year 31st March 1.04.2001: Purchase of machinery Rs 150,000 Useful life 3 years Expected scrap value Zero IT depreciation 100% - year 1 Accounting depreciation SLM Profit before depreciation and taxes (each year) Rs 200,000 Corporate tax rate 40%

latest answer

Firstly, Tax expense is not necessarily equal to Tax rate x Accounting income. The reason is that some differences are permanent. Also for other differences the tax rates might be different in earlier year- so when we account in current year for differences, the effective rate would be different.

V V

CA Inter

★ 3K+

1

34

revaluation reserve and bonus

answered on 14-May-25 11:57

sir in the last part of the video you say bonus will treated like abnormal if already accounted. but in the previous one you said no adjustment required. so what should we assume if the ques gives no clear info about bonus being deducted from pre or post but only says its accounted for? also if revaluation reserve is already existing in the BS ie. revaluation is already carried out by the subsidiary, should it also be treated like abnormal items?

latest answer

1. Yes 2. If its already accounted for, we need to add back and compute the actual post profit and then again delete it. You will get a hang of it once you practice a couple of questions

Pooja Sree

CA Inter

★ 0

4

43

Contingent liability & assets

answered on 10-May-25 15:35

How is this a contingent asset?

latest answer

Ok sir

Asmita Kar

CA Foundation

★ 7K+

4

34

AS 17 - Segment reporting

answered on 12-May-25 12:19

A test is to be performed on primary segments to find out the reportable segments. Doubt: But there is no such test for secondary segments. So, can we conclude that all the secondary segments are considered as reportable segments?

latest answer

not all secondary segments can be called reportable segments. Also the disclosure requirement for secondary segments is pretty less.

Girinath A

CA Inter

★ 765

1

40

Bank reconciliation statement

answered on 04-May-25 15:32

I can't understand 7th and 8th entry

latest answer

in the 8th entry Bills payable was paid by bank at a discount of 700. So bank basically paid 39300. However, the cashbook has wrongly recorded it as 40 000. So the credit side of the cashbook is more than the bank statement by 700. So we add the 700 to 'Bank overdraft as per bank statement' value so as to increase the value of overdraft to match with cashbook overdraft.

Sweatha Mylraj

CA Foundation

★ 180

2

42

Bank reconciliation

answered on 13-May-25 22:41

I don't understand part (iv) of the question. The cheque of 10 000 was encashed after 1st April. And cheques of 31 200 have not been presented for payment before 31st March. Shouldn't the entire 31 200 be added to bank overdraft as per passbook?

latest answer

Okay sir

Asmita Kar

CA Foundation

★ 7K+

5

45