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Written off goodwill

Accountancy

answered on 02-Mar-22 09:13

What is meaning of goodwill written off?

latest answer

Written off means to reduce the balance by charging to P&L. If the value of the asset is impaired i.e. permanently reduced as of that day, then it is written off

Ved Bishnoi

Ved Bishnoi

CA Foundation

150

4

568

Consolidation Accounts

Accountancy

answered on 05-Mar-22 11:50

In this question the final dividend paid on March 31,1980, is pre-acq dividend isn't it? If it is pre-acq and this dividend recieved by holding from subsidiary co. was correctly recorded in their accounts then why reduce it from cost of investment when actually there is no rectification required.The dividends recieved are properly recorded then why there is need for this rectification.Why reduce from Cost of investment

latest answer

The question says that the company paid 1,10,000. So this is the total amount paid. From this we need to reduce pre acquisition dividends.

pradyumna hariramani

pradyumna hariramani

CA Inter

290

20

621

Rectification

Accountancy

answered on 25-Feb-22 19:19

Why suspense account is credited or having credit balance? Is it based on assumption?

latest answer

After putting all entry in the suspense account except opening balance then the suspense account has a debit balance which is equal to the opening balance and that's why opening balance of suspense account putting in the credit side.

Sugam SM

Sugam SM

CA Final

9K+

1

383

Acc

Accountancy

answered on 25-Feb-22 15:17

can anyone simply explain the meaning of floating charge and Obsolescence whixch was given in below image ....pls tq....

latest answer

Thankyou

Balachandar S

Balachandar S

CA Inter

59K+

4

520

As 29

Accountancy

answered on 25-Feb-22 10:04

Past event and obligating event different r same

latest answer

Yes they're different

Nivetharaman Raman

Nivetharaman Raman

CA Foundation

11K+

3

380

As 4 nd as 29

Accountancy

answered on 25-Feb-22 11:34

Should I study as 4 and as 29 Separately or study both together ?

latest answer

The treatment is already explained above.

Nivetharaman Raman

Nivetharaman Raman

CA Foundation

11K+

5

431

Acc

Accountancy

answered on 24-Feb-22 10:30

can anyone explain the seventh point which was given in below image in simple.terms..... Tq.

latest answer

A Ltd (lessee ) takes a building for 50 years with economic useful life of 55 years from B Ltd(Lessor) . As per lease agreement , at the end of lease period the ownership title of the building will be transferred to the lessee, then although lessor is legal owner till last instalment is paid, according to the economic reality, A Ltd is like the owner, because lessee is controlling building and is deriving maximum economic benefits from it and lease term is as good as useful life. So according to this concept the building will be recorded as an asset in the financial statement of the company, will be depreciated as any normal asset, and remaining payments will be deemed as a decrease in liability rather than lease rental.

Balachandar S

Balachandar S

CA Inter

59K+

3

501

Inventory

Accountancy

answered on 24-Feb-22 10:35

Purchase during 1st April 29 April amounting to 10000 goods amount to 2000 not received till the date of stock

latest answer

Adjust 8000

himanshu vyas

himanshu vyas

CA Inter

0

1

433

Partnership

Accountancy

answered on 22-Feb-22 10:50

What is the difference between partner's capital AC and profit and loss appropriation ac? And when is it used? Respected faculties please help me clear my confusion. Thank you.

latest answer

Capital accounts yes. P&L appropriation is usually not required to be made at that time.

Chris Topher

Chris Topher

CA Foundation

5

4

446

Basicz

Accountancy

answered on 21-Feb-22 07:54

Is Leasehold premises currant asset or non currant assets?

latest answer

If someone has taken on an operating lease - it is not an asset in their books. If someone has given an operating lease it is a noncurrent asset. If it is a finance lease - pls check for treatment in AS 19

Sumita Shah

Sumita Shah

CA Inter

2K+

1

474