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Provision for bad and doubtful debts
Accountancy
answered on 17-May-23 00:04
1)In some problems, when credit balance of PBDD is given, and debit PBDD is found in adjustments, the net amount is written in P and L a/c 2)But in some problems, PBDD a/c is drawn, bad debts are written off and then the amount to be taken to P and L a/c is ascertained. When to do 1 and when to do 2??
latest answer
I got the answer, thank you
Jaswanth P
CA Inter
★ 3K+
1
520
Forfeiture of shares
Accountancy
answered on 17-May-23 11:34
Is this correct: Forfeiture shares a/c 50,000 To Capital Reserve a/c 50,000
latest answer
It is also correct
Lathika
CA Inter
★ 6K+
5
553
Assets held for marketing purpose
Accountancy
answered on 21-May-23 07:35
Does assets held for marketing purpose qualify to be an PPE
latest answer
Yes it will qualify
Atharv Sankliya
CA Final
★ 3K+
2
423
Creation of CRR
Accountancy
answered on 17-May-23 12:08
CRR (capital redemption reserve) is to be created on the same day the company redeems preference shares(PS), or can be created at the end of Financial year in which redemption of PS took place . For eg. In FY 2022-23, Redemption too place on 28 January, 2023, so CRR has to be created on 28 Jan 2023 only, or we can also create it on 31 March 2023 (end of same FY in which redemption took place)?
latest answer
Ok sir
Garima Bhargava
CA Inter
★ 185
2
594
Redemption of preference shares
Accountancy
answered on 16-May-23 20:00
We know there are 2 ways we can redeem preference shares (PS), one is by making fresh issue of shares and other is transferring divisible profits to CRR. All this to provide protection of creditors n outside liabilities. The question is, no doubt by fresh issue we can bring in money/funds (BCz it will increase bank balance) and then creditors can be assured that they can be paid from those funds later, if need arises (since redemption of PS would've decreased the bank funds) BUT in case we create CRR out of divisible profits, we are not introducing any additional funds/bringing any money into the company, rather we are just transferring from one reserve to another and asset side of balance sheet doesn't increase (funds doesn't increase in this case) then how can creditors feel assured/protected by creation of CRR? And even tho we created CRR, the bank bal.would've decreased on asset side. Also CRR can be used later just to issue bonus shares (ie. It increases capital ultimately), but bonus issue is optional, what if company never issues bonus out of CRR and let CRR remain same/maintained till eternity, how can creditors feel safe with CRR balance? Can CRR bal.be directly used to pay off creditors later during liquidation (so that they will feel secure with CRR balance too)
latest answer
Ok sir, thanks for clearing
Garima Bhargava
CA Inter
★ 185
4
543
Redeeming partly paid up preference shares
Accountancy
answered on 16-May-23 16:54
Why there is a provision that only fully paid up preference shares can be redeemed, what harm could've been done if partly paid up shares would've been redeemed and why it is discouraged Like company could've paid back pref.share holders whatever amount they've paid on those shares (if only ₹75 are paid up on shares of FV ₹100 then co.could simply pay back ₹75 to such pref.share holders and redeem those shares)
latest answer
Ok sir
Garima Bhargava
CA Inter
★ 185
2
542
Branch Accounting - Independent branch - 24. Illustration - 8
Accountancy
answered on 16-May-23 17:06
In this above question, it is given goods are invoiced at Cost + 20% on sale price. While preparing trading account of the branch we are assuming the amounts given for opening stock and goods from H.O are at invoice price and so we are adjusting(reducing) the amounts to only cost values in trading A/c. Following the same assumption isn't it more logical to assume the goods returned to H.O are also in par with the goods received and assume they are at invoice price. Consequently shouldn't we adjust the returns amount to cost. kindly clarify.
latest answer
Sorry I didn't notice that. Thanks for the reply sir.
Aswin Chandar
CA Final
★ 40K+
2
902
CA foundation Accountancy Compulsory 4 marks Theory question
Accountancy
answered on 15-May-23 10:51
Is the compulsory 4 marks Theory question which comes in the Question no. 1 in the Accountancy paper ( Paper 1 ) of CA foundation, does that question comes from the questions given at the end of every chapter or the question can be asked from anywhere from inside the chapters ?
latest answer
Ok Thank you
Ardhendu Sekhar Acharya
CMA Inter
★ 250
2
943
Adv
Accountancy
answered on 16-May-23 15:18
Icai ask questions in different way in your resources questions ask in different way
latest answer
Pls refer to past exams question.
R K
ACCA Skill
★ 9K+
3
447
Average due date
Accountancy
answered on 16-May-23 15:24
What should I take for calculating due date, Date of drawing or date of acceptance??
latest answer
Date of drawing. However for sight bills, date of acceptance.
Jaswanth P
CA Inter
★ 3K+
1
467