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FR syllabus
Accountancy
answered on 06-Aug-25 06:02
Whether we need to study appendix relating to all indas for ca final FR exam?
latest answer
No. Only what is included in study material
Balaji K
CA Final
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1
67
In 12 illustration
Accountancy
answered on 13-Aug-25 20:11
Why did not add closing stock in this problem
latest answer
Can you elaborate your query?
A.K. Aswini
CA Inter
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68
Sch 3
Accountancy
answered on 06-Aug-25 11:05
Why we deduct ₹142500 from 10% dividend of ₹800000
latest answer
Thank you!:)
Sr the Unique
CA Inter
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2
65
BUYBACK OF SECURITIES
Accountancy
answered on 04-Aug-25 12:59
This is dec21 QP.. Anyone kindly explain how the highlighted ones came?..why we deduct face value of preference shares redeemed from Reserves and surplus?
latest answer
Thank you sir..
Sr the Unique
CA Inter
★ 10
2
63
Capital vs Revenue Expenditure
Accountancy
answered on 07-Aug-25 10:01
Sir, how is the repair cost incase of accident example different from the eg given for change of petrol tank due to rust (replacing 12L tank with 12L)? In the petrol tank case, we considered this logic, if the expense would increase the future economic benefit for multiple accounting period, we would have considered the 12 L petrol tank as capital expense. We had removed the earlier logic of tank capacity going beyond 12 alone would be capital. Why can't we apply the same logic again here? Major repair cost due to accident, has resulted in future benefits getting lost and we are incurring the expense to get the future economic benefit (it can be revenue or cost or convivence). Hence, capital.
latest answer
That is a slightly advanced concept - you will understand in CA Inter/Final. If parts of an asset are replaced then the cost of existing part derecognised from books and the cost of new component is recognised as an asset. For e.g in case of an aircraft, seats may be replaced every 3-4 years. Engine would last for 20 years. So when seats are replaced, it would be derecognised from books and new seats are capitalised. The example could be presented slightly differently to ensure better clarity.
Vignesh Venkatesan
CA Final
★ 5
5
89
Capital vs Revenue Expenditure
Accountancy
answered on 04-Aug-25 09:53
Sir, in bike example, the insurance cost is a recurring nature of expense and the benefit from this does not spread over multiple accounting period (may be a third party insurance would be spread over multiple accounting period) and is not a one time expense. Still, we are considering it as a capital expense because it is necessary to bring the asset for its intended use. To ride the bike insurance is mandatory. Here, there is a clash between two theories (Recurring nature Vs Purpose of acquiring the asset), how could we justify one theory over the other?
latest answer
Insurance will be expensed off over the validity of insurance. say for e.g. you need insurance for 3 years mandatorily. That is shown as an asset in balance sheet and expensed over three years.
Vignesh Venkatesan
CA Final
★ 5
1
96
Capital Vs Revenue Expenditure
Accountancy
answered on 04-Aug-25 09:55
Sir, why the horn repair is considered as revenue? Repairing the horn or changing the battery are not done regularly and are not an ongoing expenses like the service of bike (eg- engine oil change or changing the nut and bolts). Then why are we considering it as a revenue expense?
latest answer
Horn repair and battery changes are considered revenue expenses because they restore the vehicle to its original working condition and do not enhance its value, prolong its useful life, or increase its capacity. However if you consider the battery cost to be significant - for e.g in case of EV, then you will depreciate battery separately and rest of car separately. You will understand this in AS-10/Ind AS 16 - component depreciation. Once the battery useful life is over, the battery is derecognised and new battery is capitalised
Vignesh Venkatesan
CA Final
★ 5
1
90
Accrual Concept and Matching Concept
Accountancy
answered on 06-Aug-25 11:23
Accrual Concept - For Expense - We need to record an expense, when the activity is completed and not when the payment is made. Is this true always sir to understand in simple terms? An income for one is expense for other, hence a person who would receive the income would record his income when it becomes receivable (right to receive) and the other person would record expense (as he needs to pay). Will always both party record at same time, a right to receive for one and right to pay for other occur same time always or can it be different? Matching Concept - Sir, what concept is used to identify the expenses which are required to earn the income for matching against the income. For eg - Certain expenses like rent, salary, electricity charges are always considered as expenses and certain expenses are added to inventory while calculating the value of unsold goods for a particular period and later when the goods are sold these are adjusted as expense. Why are we differentiating between expenses as one would directly be expense and other would go to asset and later use matching concept? As any company makes expenses to earn income, why can't we directly reduce the expense only when income is earned? [Video Time Stamp: 00:02]
latest answer
Your understanding is correct. Period expense is a term used to denote those expenses which are charged to PL in the period in which they are incurred. For example Advertisement expenditure.
Vignesh Venkatesan
CA Final
★ 5
3
103
Accounting fundamentals
Accountancy
answered on 04-Aug-25 12:36
Equation of purchase, direct expenses, closing stock, opening stock
latest answer
What is your query?
Nandhana
CMA Inter
★ 0
2
66
Will a question from this topic really be this complicated?
Accountancy
answered on 01-Aug-25 09:55
Sir, just for my convenience purposes, do we really need this in-depth understanding of this topic for exam purposes or is this just for understanding? Because there is no numerical like this in textbook actually.
latest answer
ok sir. thank you.
Rahul Anand
CA Inter
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2
107