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A bad debt of `1,560 had not been written off and provision for doubtful debts should have been maintained at 10% of Trade receivables which are shown in the trial balance at `23,390 with a credit provision for bad debts at `2,320
Accountancy
answered on 26-Sep-25 22:49
1. Here 1,560 had not been written off , thus we are writing it off crediting trade receivables a/c , which was not done earlier. 2.And provision for doubtful debts should have been maintained @ 10% of trail balance 23,390 , but not maintained instead credit provision for bad debts was maintained 2320. Here we are first ascertaining the right trail balance by subtracting 270 and 1560 we get 21560 . 10% of 21560 = 2156 which is the right provision for doubtful debts that is to be debited. Instead of debiting we have credited it with wrong account , Then why are we subtracting 1560 from the 2,320 provision for bad debts , and 720 from 2156 ? Even video couldn't help me completely , please try to make things clear, is this the right approach to think or am I missing on something so i should go reassure my basics ?
latest answer
https://youtu.be/Py6OhpDpR2g?t=4645 Pls have a look at short explanation which I have provided here. If you still have a doubt, pls let me know.
Pranav Anand
CA Inter
★ 0
1
428
Assets
Accountancy
answered on 16-Sep-25 08:34
How to treat raw materials which are purchased in previous year and still not utilized for production. [Video Time Stamp: 14:28]
latest answer
Show as inventory
Chethan mk
CA Inter
★ 0
1
178
Consolidation
Accountancy
answered on 14-Sep-25 12:17
What is the way to calculate the goodwill and the capital reserve
latest answer
The Reserves and Surplus of S Ltd. as on 1st April 2023 were ₹5,20,000. Out of this, the portion considered as capital profit is ₹5,20,000, while the remaining ₹4,10,000, along with adjustments, is treated as revenue profit, giving a closing balance of ₹9,30,000. An abnormal gain of ₹9,000 is deducted from revenue profit and added to capital profit (since its purely pre acquisition) The bonus part is reduced from capital column and added to revenue column Also apportion dividedn between pre and post. Adjust revaluation of plant and machinery. Post this you should be able to get. Share your working here. Will correct if required.
Bobby Saini
CA Inter
★ 100
1
267
Accounting of finance lease by lessor and by dealer lessor
Accountancy
answered on 14-Sep-25 12:10
In case of finance lease by lessor the logic why in NIIL calculation they added pv of ugrv and in dealor lessor in sales calculation they reduced pv of ugrv
latest answer
Pls share the actual question that you are referring to.
lakshmi sowmya pasupuleti
CA Final
★ 0
1
183
Bank loan
Accountancy
answered on 14-Sep-25 12:10
₹2,00,000 repaid bank loan this example I am not understanding
latest answer
You need to apply accounting rules of debit and credit.
Haneeksha SR
CA Foundation
★ 0
3
319
Liability
Accountancy
answered on 11-Sep-25 16:59
Assets are future period then the liabilities are short term period
latest answer
There are non current assets and current assets and Non current liabilities and current liabilities. Current liabilities and current assets are short term. Noncurrent assets and Non current liabilities are long term
Haneeksha SR
CA Foundation
★ 0
1
188
Double entry system
Accountancy
answered on 09-Sep-25 11:49
What is the format of double entry system [Video Time Stamp: 00:01]
latest answer
Ok tq
Haneeksha SR
CA Foundation
★ 0
2
183
Is ICAI solution regarding Ind As 21 and 109 wrong?
Accountancy
answered on 04-Sep-25 13:49
Since the rate Implicit in the loan is different than the rate of Interest of loan, shouldn't this be recorded at Fair Value as per Ind As 109 and not Transaction Price? Even the amortization table won't match at the end in this solution of ICAI.
latest answer
https://www.youtube.com/live/8C4oB8jbURA?si=Owvz32uJ8baOci5_
OM Lunkad
CA Final
★ 0
2
241
How correlation is not possible between cash flow and net profit under direct method
Accountancy
answered on 02-Sep-25 11:19
Sir you said correlation is not possible between cash flow and net profit under direct method. What we do in direct method we take cash items and summarize this is the cash flow . after knowing that to this extent we have cash profit . say for example my net profit is ₹100000 cash profit is ₹50000 in that case we know another ₹50000 is non cash profit . but you said correlation is not possible can you explain that how sir. [Video Time Stamp: 00:00]
latest answer
We would not know break up of non cash items and also profits/loss from other heads. since other heads consider gross inflows and outflows.
Balaji raghu
CMA Inter
★ 980
1
180
Transaction Regarding drawings
Accountancy
answered on 26-Aug-25 09:48
What if he withdrawn cash for personal use instead of buisness Will the transaction be Drawings a/c...dr To bank a/c Is this✅️or❌️ [Video Time Stamp: 02:46]
latest answer
It is correct
Bhavagna reddy Puli
CA Foundation
★ 730
1
177