AS-10

answered on 11-Nov-24 17:44

Can any one explain what is Interest charges paid to o supplier against deferred credit & Why it is not capitalised

latest answer

interest expenses incurred on a purchase arrangement where the payment for goods or services is deferred over a period of time, typically beyond the normal credit terms. For e.g. if you buy a product on credit for 90 days and supplier charges interest on it, it is called interest charges paid to supplier. Whether to capitalise or not depends on whether the asset is qualifying asset or not

Gokul N. K

CA Inter

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1

179

AS 25

answered on 11-Nov-24 12:27

3. How is the answer 17000 4. Provision for 2nd quarter should be 1.5 million right, total provision both 1st & 2nd quarter is only 2 million?

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Thanks for clarifying

Soon to be CA

CA Inter

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4

250

Company accounts

answered on 11-Nov-24 23:30

In company accounts is it neccesary to read theory

latest answer

Thank you

Misba Siddiqua

CA Foundation

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2

199

Preparation of fs

answered on 11-Nov-24 08:33

If an asset like furniture is in trail balance and there is an adjustment that particular asset is sold during that year and a new asset is exchanged during the same year... Do we need to deduct +add those assets to determine the balance of furniture

latest answer

It is best to create a ledger account for furniture. If it is sold and there will be a depreciation for that and after reducing the depreciation the furniture will be sold. If the furniture is sold for higher/lower than the carrying value then the profit/loss will be shown in P& L a/c. If the new asset is exchanged we will show the value of the new asset exchanged in the furniture account after reducing the old asset value after depreciation.

vamsi krishna

CA Inter

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223

Preparation of fs

answered on 15-Nov-24 17:11

Here the hire purchase price should be taken as base 100 as 25% is calculated on hire purchase price, but the base 100 is taken as hire purchase sales price

latest answer

Yes. Incorrectly done.

vamsi krishna

CA Inter

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207

AS 16 - Advance paid for a truck

answered on 08-Nov-24 18:58

In this question, an advance was paid for a truck out of borrowings. As the truck has not been delivered, can I assume that the truck will take a substantial period of time to get ready for intended use, thus considering it as a qualifying asset, and capitalising the relevant interest cost? ICAI material has not capitalised it,

latest answer

Understood now, thank you sir!

Vishnu Muraleedharan

CA Final

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3

259

Subscribtion account

answered on 22-Nov-24 14:38

Sir by with out using the subscription Account how can we arrive @ the amount 7170 Like - subscription outstanding for previous year + subscription for current year like this method (part 4 of NPO) can you please explain

latest answer

Subscription as per Income & Exp in 2016 = 7500 Sub outstanding for 2015 (means received in current year) + 600 Sub received in advance in 2015 (means not received in current year but included in Income and Exp ) - 450 Sub in adv as on 31 Dec 2016 + 270 Sub outstanding on 31 dec 2016 - 750 (Shown in income but not received) =7170 (It is exactly opposite of what you do from receipts and payments to income and expenditure.

Rehanabin

CA Foundation

★ 100

1

51

Consolidation

answered on 22-Nov-24 17:12

In this question:- 1)In the question they have taken A Ltd dividend as pre acquisition dividend. What is the logic behind? 2)why haven't they did any dividend adjustment in analysis of profit? In case of pre acquisition dividend then they should have reversed the dividend impact in post acquisition and deducted the dividend paid in pre acquisition right. Why haven't they did like that? 3)And what does the line mean "dividend declared on equity share capital for both previous and current year"

latest answer

The question is poorly framed. They have not told whether 10% is for each year or total for both years. The dividend has been declared at 10% for previous year and current year. Since dividend payable numbers are given, it is assumed that dividend has already been adjusted from the profit and loss account balance hence not adjusted again. It is also assumed that 10,00,000 of previous year balance is after dividend. You are conceptually correct and can ignore this question.

Niveta Rajkumar

CA Inter

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214

Accounting standards

answered on 05-Nov-24 09:27

Hi sir / ma'am In an Accounting standard in which area we have to give 2nd preference in learning ( after majority preference in learning is given to accounting treatment and disclosures ) ?

latest answer

Other than disclosure based standards dont waste unnecessary time in disclosures.

Nagachaitanya Nomula

CA Inter

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1

57

Questions are different from new studymaterial

answered on 06-Nov-24 20:48

Illustrations are different from new material . These questions are old questions that are in old studymaterial which is removed by icai from the new book

latest answer

Okay sir thank you

Priya Nair

CA Inter

★ 220

4

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