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change in accounting policy

Accountancy

answered on 23-Jan-23 19:58

change in accounting policy or introduction of new policy 1)creating a provision for doubtful debt which was not a practice in past 2)management decided to pay pension by a scheme which was not a practice in past

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Mentioned in As 5

Vamsi Krishna

Vamsi Krishna

CA Inter

121K+

6

841

Insurance Claim

Accountancy

answered on 20-Jan-23 14:50

Why we are not considering the NP +ISC as GP while Calculating increase cost

latest answer

Yeah that is for calculation of gross profit. Gross profit on annual turnover means percentage of gross profit calculated. By NP+ ISC how will you compare that with annual turnover. So we consider GP rate

Snehashis Mohanty

Snehashis Mohanty

CA Inter

35

9

502

Insurance Claim

Accountancy

answered on 24-Jan-23 09:24

How could we consider 1l as reduction in turnover avoided because here our actual turnover is 1lakh and Reduction in turnover is 3 lakh so what we are not taking 3 lakh as reduction in turnover avoided?

latest answer

Reduction is 3 lakhs. Reduction avoided is 1 lakh.

Snehashis Mohanty

Snehashis Mohanty

CA Inter

35

1

404

What is capital profit and revenue profit

Accountancy

answered on 12-Jun-24 11:58

What is capital profit and revenue profit

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Capital Profit Definition: Capital profit is the profit earned from activities that are not part of the regular business operations. These profits are usually non-recurring and arise from transactions involving the capital structure of the business. Example: A company sells a piece of machinery that it no longer needs. If the machinery was purchased for ₹3,00,000 and it is sold for ₹4,00,000, the company makes a capital profit of ₹1,00,000. This profit is not part of the company's regular sales revenue from its core business activities. Revenue Profit Definition: Revenue profit is the profit generated from the regular business activities or operations. This type of profit is recurring and forms the core income for the business from its day-to-day activities. Example: A retail store buys goods for ₹2,00,000 and sells them for ₹3,00,000. The revenue profit is the difference between the sales revenue and the cost of goods sold, which is ₹1,00,000. This profit is part of the store's normal operations and contributes to its overall income from regular sales activities. In summary: Capital profit comes from non-recurring transactions involving the capital assets of a business, such as selling an old piece of equipment. Revenue profit comes from the regular, recurring operations of the business, such as selling merchandise in a retail store.

Atharv Sankliya

Atharv Sankliya

CA Final

3K+

4

17K+

Expenses

Accountancy

answered on 20-Jan-23 10:32

What Are unamortised Expenses ? And Examples Of It ?

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Unamortised Expenses - Expenses incurred (whose benefit is beyond a single year) but the expenses is not yet charged to P&L

Shanmukh Vemuri

Shanmukh Vemuri

CMA Final

5

2

678

ICAI Q2Chap admissio of partner in memorandum revaluation account first prepare memorandum account all all adjusted after balance in old psr it was come gain then be do apposited then new PSR COME 12 :8:5 LOSS 18700 12480 7800 IS IT COMPALSORY

Accountancy

answered on 25-Jan-23 09:23

To transfer loss in partner capital alc if nothing is mensation and Q silent so I transfer p/L or not

latest answer

Assume sacrifice ration is old psr.

R K

R K

ACCA Skill

9K+

2

416

Death of a partner

Accountancy

answered on 24-Jan-23 09:26

If in the question they had mentioned profit, goodwill, policy to be credited till the date of death that 30.9.2019, how would the working notes be different? Can you show it pls?

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You would have calculated profits proportionately till 30-Sep.

Vedant Vijay

Vedant Vijay

CA Foundation

1K+

3

527

Single entry

Accountancy

answered on 18-Jan-23 18:20

Why amount stolen in may 21 has been added

latest answer

It is stolen from his house...it might be cash drawings made for personal expenses and that cash has been stolen...i don't know correctly but i think it is treated as personal and is added to capital.

Aditya Shivam

Aditya Shivam

CA Inter

0

1

518

Advance accounts - ESOp

Accountancy

answered on 21-Jan-23 21:40

Check whether my answer is correct or incorrect? I attached the question and answer below Please reply

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On 30 June, you have to debit esop outstanding ac instead of emp cost.

Krishnan K

Krishnan K

CA Inter

5K+

5

425

Capital VS deferred revenue expenditure

Accountancy

answered on 20-Jan-23 22:38

The benefit of which expenditure is not exhausted within a year it is incurred and is extended to future years. State it.

latest answer

Deferred revenue expenditure

Dova Shaji

Dova Shaji

CA Inter

520

5

1K+