Carrying cost of investment

answered on 20-Jan-23 22:42

What will be the carrying cost of investment if the cost of acquisition of investment is Rs.1000 purchase on 1 Jan 2020 and the market value at the end of FY 31/dec/2020 is 900 and on end of next FY the market price is 950 So what will be the carrying cost for both year

latest answer

As per AS-13, current investment has to be valued at cost or fair value, whichever is lower. Long term investments are always valued at cost, unless there is a non-temporary decline. Assuming the given investment as current investment, in the first year, it will be valued at 900. in the second year, it will be valued at 950.

Atharv Sankliya

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276

Partnership

answered on 18-Jan-23 10:44

In this question, the general reserve should first be added to determine the ratio in which partners will bear the loss on insolvency of R in garner vs murray rule. But in the answer they have not adjusted the general reserve for determining the ratio.

latest answer

Even if you adjust general reserve, the ratio will be same.

Sarthak Aggarwal

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394

ESOP - Advanced accounting

answered on 16-Jan-23 05:38

Journal Entry Employee retention cost Dr To ESOP outstanding P&l Dr. To Employee retention cost It is the answer given in book My doubt is that: How 'ESOP outstanding' showed in Balance sheet? My answer: 'ESOP outstanding' is showed in liability side of balance sheet. Is my answer correct?

latest answer

Thank you.

Krishnan K

CA Inter

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280

What is main principles in accounting standards

answered on 15-Jan-23 09:35

What is main principles in accounting standards

latest answer

Main principles laid down in AS-13 from para 26 to 35

Atharv Sankliya

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367

Special dividend

answered on 20-Jan-23 22:57

What will be the treatment of special dividend in investor's books of accounts

latest answer

Dividend is an income and hence, it has to be credited to the P&L. In investment accounts chapter, you can post the amount in the dividend column of the credit side.

Atharv Sankliya

CA Final

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258

Investment account - property

answered on 18-Jan-23 10:44

does the property held for investment purposes is recorded at market value or cost whichever is lower if yes then if the market price is lower the loss is tranfer to which account (revaluation, capital reserve p&l a/c etc) ?

latest answer

As per as 13 - INvestment Properties are accounted for as long term investments. Write off due to permanent decline Dr. P&L Cr. INvestment Property

Atharv Sankliya

CA Final

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290

Insurance claim

answered on 13-Jan-23 06:58

As we know as per average clause the if the value of the stock is more than the insured stock then the claim will not be accepted then how can we claim 120000 insurance because we have lost the stock of goods is 155000.

latest answer

Sorry, please read claim= policy amount (Claim = actual loss is wrong)

Snehashis Mohanty

CA Inter

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286

FORWARD CONTRACT

answered on 12-Jan-23 09:33

Diff btw hedging and speculation.

latest answer

Bank or other party in market

Kamal Kumar

CA Inter

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239

Insurance claim

answered on 12-Jan-23 09:49

If 3500 is written off from 10000 then the 3500 should be the value of defective stock but her after deducting 3500 the 6500 is taken as the value of defective stock

latest answer

Written off is not abnormal stock its abnormal loss and balance from that material is abnormal stock. Cause its not normal activity of business to sell damaged material.

Snehashis Mohanty

CA Inter

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9

281

Branch accounting

answered on 11-Jan-23 19:55

Is there any soft copy notes provided by indigo learn for financial accounting CMA INTER IF yes, where do i find it.

latest answer

Yes . You can find it under 'Free resources' in this app.

Thajmal Thaju

CMA Inter

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