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Doubt
Accountancy
answered on 21-Nov-22 07:58
Purchases we post in trading account debit side, what I know but you said that purchases sits in p & l account how? U said adjusted purchases sits in profit and loss account so plz clear this point.
latest answer
1.Trading account profit will be transfer to P&L A/C .now their is an un recorded purchase amount xxx . 2.Now waht will you have to do you have to increase purchase That's mean the profit had to be decreased. 3.But already you closed trading account by transferring profit to the CREDIT SIDE OF THE P&L A/C. 4 Now you have to reduce the pfofit by way of increasing PURCHASES . That's why we will post adjust purchases in Debit side of p&l a/c.
Anil Raj
CA Foundation
★ 580
3
479
Pre and Post incorporation P/L
Accountancy
answered on 20-Nov-22 16:09
The interest that company pays to the owner of previous business, while acquiring that business, must be the expenditure of/attributable exclusively to company only (and not of the firm), because it's the expense of company and not the firm (only company is liable to pay it to the firm) then why do we apportion this interest expense between pre and post incorp period (it should be posted exclusively to post incorp period, just like director's salary or interest on debentures - exclusively attributable to company)?
latest answer
If you paid interest on purchase consideration. The interest amount needed to capitalise. So prior period interest is to get capitalised and transfer to pre incorporation period. The remaining amount is treated as a loan taken not like purchase consideration.
Garima Bhargava
CA Inter
★ 185
1
606
Cash flow statement
Accountancy
answered on 20-Nov-22 14:36
While preparing CFS under the indirect method why should we add a decrease in prepaid expenses?
latest answer
Okay.
Jitendra Kumar
CA Final
★ 41K+
5
498
Small doubt is
Accountancy
answered on 20-Nov-22 10:13
What is the crt ans (V) th one with appropriate reason. Could anyone help me out
latest answer
A partnership firm can't own any assets because partnership doesn't have sperate legal entity ( member are different from its business) Like company.
Balachandar S
CA Inter
★ 59K+
3
430
Company Accounts CMA paper 12
Accountancy
answered on 21-Nov-22 09:30
Hello Guys, just a quick question; in problem on beautiful co part 4 we forfeit the shares and reissue and finally arrive at the bal sheet. Since we I didn't reissue the forfeited shares at a discount, why is the price still taken as Rs.10? It should be Rs.8 right? Also we didn't forfeit the entire amount but is taken as Rs.10.. Can someone shed some light on this for me please?
latest answer
Share capital is always credited at face value. Hence 10 is taken.
Sri Murthy
CMA Inter
★ 0
9
412
P/L pre and post incorporation
Accountancy
answered on 20-Nov-22 15:26
1)Why do we differentiate between P/L pre or post incorporation (afterall we just want to know P/L of whole year, so why to find pre and post) 2)And why do we have seperate treatment for P/L pre incorporation(as given in below picture),why it can't be treated as normal P/L(like post incorp P/L)?
latest answer
Ok got it thanks
Garima Bhargava
CA Inter
★ 185
9
778
Inventories ca foundation
Accountancy
answered on 17-Nov-22 21:48
Is adjusted selling price method important in inventories ca foundation? Should I leave that?
latest answer
But it is advisable not to leave that topic..... In exam point of view
Prasoon Tiwari
CA Inter
★ 22K+
4
461
Inventories
Accountancy
answered on 17-Nov-22 15:36
Which method to use to find closing stock in inventories if nothing is specified in question??
latest answer
Without mentioning which method is to be followed questions won't be there in study material , if it is then follow FIFO method
Prasoon Tiwari
CA Inter
★ 22K+
1
443
Admission of partner
Accountancy
answered on 21-Nov-22 09:33
In this question , they clearly mentioned that incomming partner will pay 15000 for premium of goodwill. But still sir solved by debiting incomming partner capital a/c for goodwill journal entry instead of cash a/c . Which a/c should be debited for goodwill journal entry . Doubt raised bcoz " pay " clear means cash right ?
latest answer
The total amount brought in by new partner is credited to capital account. The goodwill is debited to new partner and credited to old partners. If old partners withdraw, then debit old partners and credit cash.
akhil shihab
CMA Inter
★ 25
7
540
Format Closing stock on Consignment a/c
Accountancy
answered on 17-Nov-22 12:27
Please explain what are the items to be calculated while computing closing stock on consignment a/c and what not to be taken
latest answer
Closing inventory should be at cost...so,it should be deducted from profit on sales( if it is not at cost), it should be added with direct exprenses
Anitha V K
CA Inter
★ 4K+
1
374