Consolidation

answered on 27-Nov-24 15:12

Trade payables of holding company include ₹35,000 due to subsidy company for good supplied since the acquisition of shares these goods are charged at 10% above cost Accounting treatment ?

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1. Eliminate Inter-company Balances: The trade payables of ₹35,000 in the holding company and the corresponding trade receivables in the subsidiary's books will be eliminated in consolidation. 2. Adjust for Unrealized Profit: The goods are sold at 10% above cost, meaning the unrealized profit is embedded in the inventory still held by the holding company. Unrealized profit needs to be eliminated from both the inventory and consolidated profit. Calculation of Unrealized Profit: Profit margin = 10% of cost Cost = Selling price / (1 + Profit Percentage) = ₹35,000 / 1.10 = ₹31,818.18 Unrealized Profit = Selling price - Cost = ₹35,000 - ₹31,818.18 = ₹3,181.82

Sushmita Chowdhury

CA Inter

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434

Financial statements of company

answered on 27-Nov-24 15:14

Is Accounting treatment for Interest Accrued but not due and Outstanding interest for the year Is same? Does both has to be charged under Finance cost ?

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The accounting treatment for Interest Accrued but Not Due and Outstanding Interest for the year are generally classified under Finance Costs in the statement of profit and loss.

Ankitha Rao

CA Inter

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AS 7

answered on 26-Nov-24 16:02

3 year contract Incurred cost 1st year =30 L Estimated additional cost = 90 L Total Contract Value = 112 L Assume work is completed to the extend of 75% by the end of year 2 Find total expense to be recognised in year 1

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Revenue = 28 lacs cost = 30 Lacs Loss - 2 lacs Expected loss = 8 lacs. So provision of 6 lacs is made. Total expenses = 36 lacs.

Yadhav yky

CA Inter

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376

AMALGAMATION

answered on 26-Nov-24 16:03

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Mallarapu GDR

CMA Inter

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Amalgamation

answered on 26-Nov-24 14:45

Not played this content in my device

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It is playing in our app and website Can u play video on laptop and record it on your mobile and share the video by email to support@indigolearn.com

Mallarapu GDR

CMA Inter

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44

Types of GST

answered on 26-Nov-24 16:09

If someone is paying the IGST along CGST then also did he or she has to pay SGST

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If a transaction requires IGST - it will not require CGST or SGST If a transaction requires CGST, it will require sgst as well.

Akshara Agrawal

CA Foundation

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63

Internal Reconstruction

answered on 25-Nov-24 20:27

Why have we not provided journal entry for arrears of preference dividend? (Point iii)

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If the question states that arrears of preference dividend is payable, then you need to pass an entry for the same.

Sagar Kathuria

CA Inter

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468

Ch11 financial statements unit1

answered on 27-Nov-24 01:57

In ch11 FS UNIT1 ILLN 4 Debenture interest has been shown as Current liability and in ILL 6 it is not shown as Current liability, should it be shown or not

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Tq

yaazhini kathiravan

CA Inter

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370

Pand l

answered on 25-Nov-24 08:26

How we got finance cost for this problem

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It is a typo error. Finance costs are nil and 18,240 is the depreciation and amortization expenses

Dharshana Rajkumar

CA Inter

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273

Cash flow statement

answered on 25-Nov-24 08:46

Can someone please solve it and share the workings (Q2)

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Please solve the problem by yourself. If you have any doubts while solving the problem you can ask here

Sagar Kathuria

CA Inter

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