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Guaranteed Residual Value

Accountancy

answered on 02-Mar-26 17:18

Sir, You said that Any maintainance costs given by lessee to lessor at end of lease term also forms the part of GRV, Does it apply only if Lessee purchase the asset at End of Lease term?? [Video Time Stamp: 18:27]

latest answer

No. Even if not purchased or purchased by third party

Jagadeesh Jaidev

Jagadeesh Jaidev

CA Inter

645

1

118

Minimum lease payment

Accountancy

answered on 05-Mar-26 15:37

Sir, For Lessor, If any Residual Value Guaranteed by a third party, Won't that amount be manipulated by Lessor(Lessor may Inflate the RV)and be different from the actual ?? OR is MLP different for Lesse and Lessor,?? If so, Then which one should we consider?? Does it form the part of the Lease Agreement?? [Video Time Stamp: 18:26]

latest answer

The lease agreement contains the rental schedule, residual value clause, guarantee details, etc. From those terms, accountants derive MLP separately for lessor and lessee books. So MLP is a derived figure for accounting entries not a term written in the contract.

Jagadeesh Jaidev

Jagadeesh Jaidev

CA Inter

645

5

132

AS 7

Accountancy

answered on 05-Mar-26 10:35

Sir, why has interest for 9 months included in cost of construction when it was specifically mentioned for 8 months and also as per AS 7 and 16, it should be considered for that period only where construction is in progress?

latest answer

ICAI has not been consistent in treatment of such questions. The number of months depends on assumption.

Rahul Anand

Rahul Anand

CA Inter

6K+

1

135

AS 19

Accountancy

answered on 28-Feb-26 19:22

What will be the answer to this rtp mcq

latest answer

ok Sir.

Rahul Anand

Rahul Anand

CA Inter

6K+

2

116

Illustration 6

Accountancy

answered on 28-Feb-26 06:16

Sir, In the Questions its mentioned that there will be no FEB in year 4, Why did we charge 3rd year amortization cost(30L) too along with the 4h year's 15L?? [Video Time Stamp: 16:20]

latest answer

Because no benefit in year 4. So all benefits exhausted in year 3. Hence entire amount written off.

Jagadeesh Jaidev

Jagadeesh Jaidev

CA Inter

645

1

88

Excess of carrying amount

Accountancy

answered on 27-Feb-26 16:50

Sir, This part I am not able to understand, Can u explain with an example??

latest answer

Say after adding interest the value of PPE becomes 1,10,000 Actual recoverable amount of PPE (like we have NRV in case of inventory- you will understand it in AS 28) is only 1,05,000 The PPE should be shown at 105000 only. So capitalisation will be restricted to 105000

Jagadeesh Jaidev

Jagadeesh Jaidev

CA Inter

645

1

115

Initial operating losses

Accountancy

answered on 26-Feb-26 01:02

Sir, Initial operating losses BEFORE asset achieves planned performance is excluded. The if there are any losses occured AFTER this l, Can they be Capitalised?? If you give an example for this, It's very helpful.

latest answer

Ok sir

Jagadeesh Jaidev

Jagadeesh Jaidev

CA Inter

645

2

108

Recognition of PPE and IA

Accountancy

answered on 27-Feb-26 16:50

Sir, If a co. Has a laptop of 50k, and has a design software of 1L worth. Then how to consider it?? Should we treat them separately as Laptop as PPE and Software as IA??

latest answer

Laptop - PPE 50k Design Software - IA - 100k

Jagadeesh Jaidev

Jagadeesh Jaidev

CA Inter

645

1

118

Journal Entry

Accountancy

answered on 18-May-26 09:04

Is the journal entry shown in the picture correct?

latest answer

who has deducted tds?

Snehashis Mohanty

Snehashis Mohanty

CA Inter

35

9

151

Suhana Ltd. Q No. 4. Substantial period of time

Accountancy

answered on 22-Feb-26 06:08

Sir, In the definition, Its given that 12 months is usually considered as substantial period of time for Qualifying Asset, But in this question, It's 11 months only, How is it right for us to assume that it is a substantial period? And no other data given such as co. considers 11 month also as substantial period of time. Is it okay to consider any period of time as substantial period if not given in case of construction?? If its less than 12 months, Isn't the Question supposed to be given "as per accounting policy of Co. N no. Months can be considered as substantial time?? [Video Time Stamp: 08:33]

latest answer

The question should have mentioned or alternatively we can take our assumptions. The 12-month period is only a general guideline, not a strict rule. If an asset takes close to 12 months (like 11 months) and is construction-related, it can still be treated as a qualifying asset

Jagadeesh Jaidev

Jagadeesh Jaidev

CA Inter

645

1

137