Amalgamation

answered on 18-Aug-22 08:40

Why the non trading income was deducted from total assets while computing capital employed?

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Tq

Sajeetha R

CA Final

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256

Capital and revenue

answered on 19-Aug-22 23:04

Sir in one of the examples you said that friend took our bike and damaged and some expenses incurred and it is revenue expenditure .. not capital expenditure. But I am thinking it is capital expenditure bcoz new parts we are adding repairing to it so benefit comes over the period of time so it is capital expenditure right? Plz clear this point..

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Capital expenditure is the money spent by a firm to acquire assets or to improve the quality of existing ones. Revenue expenditure is the money spent by business entities to maintain their everyday operations. Capital expenses are incurred for the long-term.

Anil Raj

CA Foundation

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5

291

JOURNAL ENTRY

answered on 18-Aug-22 01:27

What will be the journal entry for sale of land??

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Thankyou

Prathmesh kharul

CA Foundation

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AS 5

answered on 16-Aug-22 18:18

Explain the red box Why it was considered as not a change in accounting policy ? Please say the reason behind this ?

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Introduction of new accounting policy is not considered as change in accounting policy. Here , ad hoc means no policy simply just like that they were making payment . So it's not regarded as change in accounting policy..

Balaji R

CA Final

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AS 17 segment reporting

answered on 17-Aug-22 11:34

Please explain me the meaning of these 2 pictures

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Entire AS 17 is explained as part of free modules. please set your profile as CA inter and you will be able to access the videos.

aaditya Kailash k

CS Executive

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3

349

#12: Question of the day (Inter)

answered on 16-Aug-22 21:14

Write the answer in a sheet as you would write in exam and send photo by 8pm. #LetsPractice U Limited has obtained a term loan of Rs. 620 lacs for a complete renovation and modernization of its Factory on 1st April, 2020. Plant and Machinery was acquired under the modernization scheme and installation was completed on 30th April, 2021. An expenditure of Rs. 564 lacs was incurred on this Plant and Machinery and the balance loan of Rs. 56 lacs has been used for working capital purposes. The company has paid total interest of Rs. 68.20 lacs during financial year 2020-2021 on the above loan. The accountant seeks your advice how to account for the interest paid in the books of accounts. Will your answer be different, if the whole process of renovation and modernization gets completed by 28th February, 2021?

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Correct answer: Rs. 62.04 lakh to be capitalised and Rs. 6.16 lakh to be charged to Profit and Loss Account. If the whole process of renovation and modernization gets completed by 28th February, 2021; P&M will not be considered as qualifying asset. In that case, entire interest to be charged to P&L. For details, please refer the pic below.

Sahibdeep Singh

CA Inter

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Co account

answered on 17-Aug-22 16:46

What is reserve capital with understanding example

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Always welcome

Deepa

CA Inter

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289

Plse check me

answered on 15-Aug-22 17:38

as per Accounting standard 2 valuation of inventories, valuation of raw material..cost of raw material or replacement value whichever is lower we should have to take that lower amount am I correct?? for an example the raw material cost is RS 1000 but the replacement cost Rs 600 means we should have to take lower value to value the raw material rupees 600 am I correct?? does replacement cost and market price both same?? plse guide me

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Raw materials are always valued at cost. However, If raw material prices are falling down and finished goods are expected to be sold at below cost i.e their NRV is less than the cost then raw material will be valued at NRV and replacement cost of raw materials is the best measure of their NRV. Replacement Cost is the cost we will incur if we buy the raw material today.

MPR Sanjay Kumar

CA Inter

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8

925

Is enough time is remaining for ca foundation

answered on 14-Aug-22 12:45

Can I still start my preparation for dec 22 ca foundation is there enough time for it

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Study planner is very much helpful

Atharv Sankliya

CA Final

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7

248

Is enough time is remaining for ca foundation

answered on 14-Aug-22 12:45

Can I still start my preparation for dec 22 ca foundation is there enough time for it

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Very much yes, if you focus from right now

Atharv Sankliya

CA Final

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