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Basics
Accountancy
answered on 16-Jan-26 10:35
Sir, I am from Science Background. What Topics should I read before understanding Accounting standards?? Should I read all basics now or would you tell me what particular fundamentals I should read to understand one particular chapter as we go on through the syllabus. (Ex.- When we r about to study CFS, what basics should I read in order to understand Cash Flow Statement??)
latest answer
Ok sir. Thank you
Jagadeesh Jaidev
CA Inter
★ 645
4
164
Intermediate exam
Accountancy
answered on 08-Jan-26 13:00
For the accounts exam in the internal reconstruction question I wrote capital redemption a/c instead of capital reconstruction account in the journal throught the question will l loose my entire marks
latest answer
Not entire marks.
Swania Shaji
CA Inter
★ 0
1
164
Buy back
Accountancy
answered on 05-Aug-26 17:23
In resource test Paidupshare cap include preference share capital or not In share outstanding ? In debt equity test in equity prefrence share cap included ?
latest answer
yes
Sri ram Pothineni
CA Inter
★ 11K+
3
208
As14
Accountancy
answered on 04-Jan-26 20:40
Sir , in case of AMALGAMATION in nature of merger , what adjustment should to be done for excess of what we get than what we paid ?
latest answer
Ok sir thank you
Nagachaitanya Nomula
CA Final
★ 8K+
2
176
illustration 6
Accountancy
answered on 08-Jan-26 13:04
sir the balance sheet given in question is not tallying and in notes to accounts from where did the opening balance of DRR AC of 30k came from [Video Time Stamp: 00:33]
latest answer
Balance sheet is tallied. You should not add Authorised Capital. Ignore 30,000. It was by mistake on screen.
Rudransh Aheer
CA Foundation
★ 3K+
1
218
illustration 6
Accountancy
answered on 08-Jan-26 13:05
sir why did we not paid interest to debentures? [Video Time Stamp: 15:54]
latest answer
Assumed that it is already paid.
Rudransh Aheer
CA Foundation
★ 3K+
1
163
illustration 6
Accountancy
answered on 08-Jan-26 13:09
sir from where did the bonus share amount 25k came from? [Video Time Stamp: 12:30]
latest answer
1 right share is issued before bonus. So number of rights shares = 20000/4 = 5,000 Now total shares is 25,000 BOnus is 25000/5 = 5000 Total bonus value 50,000
Rudransh Aheer
CA Foundation
★ 3K+
1
208
Adjusted Selling Price Method
Accountancy
answered on 08-Jan-26 13:10
Sir, In this method we are valuing the closing stock at SP. You have given us the rule to follow in valuation of inventory as cost or net realizable value which ever is lower should be used in inventory valuation. Then, why are we not using the same in solving the sum solved under this method sir. This confuses a little.
latest answer
We are not valuing at selling price. We are reducing gross profit from selling price which gives us the estimated cost.
Vignesh Venkatesan
CA Final
★ 5
1
231
Adjusted Selling Price Method
Accountancy
answered on 08-Jan-26 13:21
Sir, we have studied the historical cost method to ascertain the COGS and the balance figure was our Closing Stock for Perpetual inventory system, but in this non-historical method, we are given the value of closing stock and the COGS is being ascertained, so is this method part of Periodic inventory system? I'm not understanding how this adjusted selling price method fits to be considered for Perpetual Inventory System, as both in the illustration you have assumed the closing stock as 200 and the illustration of study material also gives the closing stock value at SP, though we have not calculated the COGS directly, we have used this to ascertain the COGS indirectly by Sales - Gross Profit. [Video Time Stamp: 17:06]
latest answer
Under the adjusted selling price method, we start with sales and gross profit to arrive at COGS indirectly. This is done only because closing stock is available at SP and GP rate is given. It does not convert the system into periodic.
Vignesh Venkatesan
CA Final
★ 5
2
292
Overstated Purchase of last year adjustment
Accountancy
answered on 08-Jan-26 13:30
Sir, in the last year we had already shown the x+10,000 as Dr in Purchases, x as Cr in Creditors and the 10,000 as Cr in Suspense a/c. The Q gives that all suspense of last year is adjusted in P&L a/c itself, hence, the suspense a/c would also have been adjusted in P&L and the net impact on the last year P&L should have been nil as Dr is overstated by 10,000 and the suspense a/c transferred to P&L by 10,000. Hence, in adjusting in the current year why are we re-introducing the suspense a/c once again by passing suspense a/c dr To P&l adjustment a/c. By following the previous video logic, the correct impact and wrong impact in P&L both being zero we could have not passed an entry or we could have Dr and Cr the P&L adjustment a/c by 10,000. I'm not understanding why are we introducing Suspense a/c in the current year sir. [Video Time Stamp: 05:55]
latest answer
Just as a memorandum entry stating that the error was identified. This leaves a trail. In real life, this are adjusted as prior period items. Now in this case there is nil impact and what you mentioned is absolutely right logic and approach. Sometimes compensating errors may lead us to some other errors. So whatever is identified is recorded.
Vignesh Venkatesan
CA Final
★ 5
1
181