Depreciation

answered on 27-Oct-22 13:48

Why do we add back depreciation in cash flow in indirect method

latest answer

we are trying to find out the cash flow from operations with profit as a starting point. In order to find out the profit, we already deducted depreciation therefore because of depreciation my profit is decreasing but not my cash flow. in order to find out cash balance from profit, add back the depreciation, then profit would be turned into cash balance

Abhishek Kambampati

CA Final

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5

233

Depreciation on overused machinery

answered on 30-Sep-22 17:44

depreciation is charged on a fixed assets on straight method say â?¹1 lac /year if the machine is overused during a year how it is recorded ??

latest answer

Yes it form basis for certain things you learn in Inter.

Atharv Sankliya

CA Final

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9

234

Which chapter to start ?

answered on 30-Sep-22 16:00

Depreciation Not for profit organizations Company accounts Partnership accounts

latest answer

Depreciation shoudl be first. Post that go for NPO and then either partnership or company accounts.

Priyamvatha Parthasarathy

CA Foundation

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11

223

Hoarding/banner accounting entries

answered on 30-Sep-22 15:51

On Petrol pump there are many hoarding and panner of warning, instructions and hazards sign how these hoarding/banner is recorded??

latest answer

If for advertisement - use Advertisement account If Others - General Printing, Other Expenses. There is no hard and fast rule on the account creation/nomenclature.

Atharv Sankliya

CA Final

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806

Sales promotion expense

answered on 01-Oct-22 20:16

If a firm promote their sales by giving the gift to dealer worth â?¹1 lac and incurred cost of travel to deliver the gift â?¹ 10 thousand how it is recorded does the travel expenses is added to promotion expense?? And which accounting standard/ concept deal with this type of situations

latest answer

Yes.Purpose for which it is incurred should be taken.ie) for sales promotion only travel expenses is incurred

Atharv Sankliya

CA Final

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317

Doubt

answered on 02-Oct-22 08:54

Can anyone give me the difference between insolvency and bankruptcy with example?

latest answer

Thank you so much to both of you

Umayal Lakshmanan

CA Final

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3

252

Redemption of preference shares PQ(2)

answered on 29-Sep-22 12:54

Anyone explain this entry? I haven't started redemption of Deb chapter. Since 1000 were redeemed, interest also should be on 1000 FV of debentures right? i.e., 1000*100*9/100*4/12 And equity shares were rs2 per share then how did they consider 15000 shares?

latest answer

So regarding conversion I think I will learn in redemption of Deb . Thanks for the reply..

Sugam SM

CA Foundation

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5

360

AS-18 Related Party Disclosures

answered on 01-Oct-22 09:56

Find are they related in following cases:- 1)If a person A is a KMP of B Ltd. as well as of C Ltd. then are B Ltd. and C Ltd. related. 2)If A Ltd. holds 60% in B Ltd. and B Ltd. holds 55% in C Ltd. and A Ltd. holds 60% in D Ltd. then are C Ltd. and D Ltd. related.

latest answer

Ok sir, Thank you

Harsh Mittal

CA Final

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4

265

Cash Flow Statement

answered on 30-Sep-22 16:00

To calculate the value and increase/decrease; Opening Value of Balance Sheet - Closing Value of Balance Sheet Taken. But why for Trade Payable and Outstanding Liabilities the sequence was changed to Closing Value of Value Sheet - Opening Value of Balance Sheet?

latest answer

Yes. To both your questions.

A B

CA Inter

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366

Issue of debentures

answered on 29-Sep-22 08:18

How to calculate intrest on debenture and tax deducted at source a/c And explain the second entry in the problem given below

latest answer

TDS IS APPLICABLE ON VARIOUS INCOME SUCH AS SALARIES, INTREST RECEIVED, COMMISSION RECEIVED, DIVIDENDS etc

Mohammad Badurul

CA Inter

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6

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