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

★ 32K+

3

289

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

65

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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1

253

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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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

82

Investment accounting

answered on 14-Nov-24 16:46

Help me calculate pre and post divided

latest answer

Thank you for reply I got my answer

MOHAMED RAAFI

CA Inter

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3

390

AS 16 Borrowing cost.

answered on 18-Nov-24 16:42

In the mentioned examples, in the case of the construction of buildings, some buildings may be sold even before their construction is completed. So considering it as inventory, should we cease the capitalization of borrowing costs?

latest answer

If buildings are sold as incomplete or still in progress, the capitalisation would continue till the time construction is complete.

SHAMIL SHAMSUDDHEEN

CA Inter

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1

77

Markup

answered on 07-Nov-24 15:53

Is mark up will be part of inventory cost?

latest answer

No

Guruprasad Joshi

US CMA All

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1

68

Dividend paid

answered on 31-Oct-24 14:59

Sir, why dividend paid is not add for determine operating profit because it's a non trading items?

latest answer

Dividend paid is not debited to profit and loss account. So we dont need to add back. We start cashflow statement from net profit before taxes

DEBJANI Dutta

CA Inter

★ 0

1

281

Doubt on the 2nd entry passed

answered on 18-Nov-24 16:41

How did you get the no of shares to be 10000

latest answer

10,00,000 / 100 Total share value divided by face value per share.

Dova Shaji

CA Inter

★ 520

2

168