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Framework

Accountancy

answered on 02-Jan-23 09:21

A machine was acquired in exchange of an old machine and ` 20,000 paid in cash. The carrying amount of old machine was ` 2,00,000 whereas its fair value was ` 1,50,000 on the date of exchange. The historical cost of the new machine will be taken as (a) ` 2,00,000 (b) ` 1,70,000 (c) ` 2,20,000 How is historical cost came 170000 ?

latest answer

150000(fair value) + 20000(amount paid in cash) = 170000

Sushmita Chowdhury

Sushmita Chowdhury

CA Inter

0

2

425

Framework chapter

Accountancy

answered on 31-Dec-22 22:43

Liabilities are recorded at the undiscounted amount of cash expected to be paid on settlement of liability in the normal course of business under: (a) Present value. (b) Realizable value (c) Current cost. ICAI mat answer given is (b) How & why

latest answer

Settlement value is the realisable value for a liability

Sushmita Chowdhury

Sushmita Chowdhury

CA Inter

0

1

359

Exam

Accountancy

answered on 20-Jan-23 23:46

Easy chapters to prepare well in May 2023?

latest answer

To score 40-45 marks easily, cover the following thoroughly: Accounting Standards Hire Purchase Investment accounts Insurance claims These will give you a passing mark, but this is a very good scoring and will help you in your aggregate. So, try to cover all chapters. You may leave out some concepts which you feel very difficult, but atleast have an idea of each chapter.

Narra Thirupathaiah

Narra Thirupathaiah

CA Inter

335

4

336

Cash flow statement

Accountancy

answered on 28-Dec-22 17:04

Please tell me why they have added O/s wages and expenses

latest answer

Yes it is operating but when it is payable means liability so increase in current liability therefore we add it

Dhakshana Dhakshana

Dhakshana Dhakshana

CFA L2

18K+

2

292

AS 14 - Can't find it !

Accountancy

answered on 27-Dec-22 12:29

For some reason I couldn't find the classes for AS 14 in my courses in Advanced Accounting tab

latest answer

It is covered in Amalgamation chapter in Without AS course.

RADHA MADHAV

RADHA MADHAV

CA Inter

0

1

393

Redemption of preference shares

Accountancy

answered on 25-Dec-22 18:16

the following or extract from the balance sheet of ABC Ltd as on 31/12/20x1 Share capital 50,000 equity share capital of Rs.10, each fully paid up Rs.5,00,000 2000 10% redeemable preference shares of Rs.100 each fully paid up Rs.2,00,000 Reserves and surplus capital reserve Rs.2 lakhs general reserve Rs.2 lakhs profit and loss account Rs.75,000 On 1/01/20X2 the board of directors decided to redeem the preference shares at premium of 5% by utilisation of reserves You are required to prepare necessary journal entries, including cash transaction in the books of the Company Answer please

latest answer

Sorry.. I got it.. Thank you for helping us out sir!!..

Siva subramaniam M

Siva subramaniam M

CA Inter

105

6

567

How to get 90+

Accountancy

answered on 28-Dec-22 20:30

Can anyone guide me how to get 90+ in both the accounts . I'm doing all the ISM, mtps, rtps, pyp of last three years only upto 2020 I'm giving my exams in may23 is it ok to score 90+ ?

latest answer

Ok

I DON'T KNOW!!! !!

I DON'T KNOW!!! !!

CA Inter

1K+

4

369

AS-2

Accountancy

answered on 23-Dec-22 08:06

As per AS 2 The RM will be valued at cost or Replacement Cost if the FG will be sold at below the cost of FG. Then in this question why the cost of raw material is considered because the FG is sold at 350 wheather 360 is the cost. The question is give in the image

latest answer

Yes. Replacement cost is an approximation of realisable value.

Snehashis Mohanty

Snehashis Mohanty

CA Inter

35

4

369

INVESTMENTS

Accountancy

answered on 23-Dec-22 14:47

What is the meaning for an asset is capital appreciation while we investing?

latest answer

appreciation means increase in value. It may be realised or unrealised. For PPE you follow guidance given under AS10 /Ind AS 16 for revaluation.

Kamal Kumar

Kamal Kumar

CA Inter

7K+

6

323

final accounts of non manufacturing entities

Accountancy

answered on 22-Dec-22 11:21

How can we calculate closing stock in this question?

latest answer

If stock = 100, Bank OD = 100 x 80% x 80% = 64 So 64 => 100 320000 => X Cross multiply 320000 x 100/64 =5,00,000

Ameena Yasmine PA

Ameena Yasmine PA

CA Inter

3K+

4

461