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Accountancy

answered on 14-May-25 12:34

Dividend is non adjusting event and still how is it disclosed at notes on account I.e after balance sheet sign ?

latest answer

Final dividend comes into picture at AGM only. If AGM is delayed, then you may have to include in disclosures.

Sushmita Chowdhury

Sushmita Chowdhury

CA Inter

2K+

7

275

Suspense account

Accountancy

answered on 21-Apr-25 11:59

When we don’t write the entry there is no effect in the trial balance the where did the suspense account come from?

latest answer

It is not that we have not passed the entry. We have passed the entry. But We have not take customer's account to trial balance. Hence the trial balance will not tally and we wil record in suspense account.

Rudransh Aheer

Rudransh Aheer

CA Foundation

3K+

2

272

AS 11

Accountancy

answered on 21-Apr-25 12:02

A company based out of India exported goods worth $10,000 to a customer in the US on 30th June 2017. The customer settled the amount on 30th April 2018. The company closes its financial statements on 31st March of every year. The exchange rate of 30th June 2017 was Rs. 60/$, on 31st March 2018 was Rs. 61/$ and on 30th April 2018 was Rs. 60/$. What is the foreign exchange gain or loss in this transaction to be recognised in the profit and loss account for year ending on 31st March 2019? If you are accounting for gain in the year 2018, arent we overstating revenue to the extent of 10000? as the amount is unrealised. can we account it as gain ?

latest answer

Date | Event | Rate (INR/USD) | Amount (USD) |Amount (INR) | 30-Jun-2017 Sale recorded (initial recognition) ₹60 $10,000 ₹6,00,000 31-Mar-2018 Year-end balance sheet date ₹61 $10,000 ₹6,10,000 30-Apr-2018 Settlement received ₹60 $10,000 ₹6,00,000 Now as on 31st mAr 2018, there is a gain of 10,000 on customer receivable. This gain is recorded. We do not know how much would be the settlement value on 30th April 2018. Also for monetary items - we know that we would be receiving 10,000 $ and current worth of those $ is 6,10,000. Hence a gain of 10,000 is recognised. It like having a foreign currency at hand.

gokul___g _

gokul___g _

CA Inter

9K+

1

246

AS 11

Accountancy

answered on 21-Apr-25 12:16

which exchange rate is usually used when translating net realizable value of an inventory into foreign currency? If it is the rate at which the net realizable is determined. It should be the closing rate right, because usually NRV is determined at the end of financial year? Is that the reason. If yes why does attached MCQ has two options one is closing rate and rate on date on which NRV is determined.

latest answer

Financial statements may be prepared for interim period as well . So you take the date on which NRV was determined.

gokul___g _

gokul___g _

CA Inter

9K+

1

350

Intangible asset

Accountancy

answered on 18-Apr-25 16:11

Sir... Wt if the skilled employee made an agreement with entity for fixed period of time(i.e he will do job for 10yrs like that) for that much period can we call him intangible asset becoz we can have control on him know sir for that much period

latest answer

Achha tq sir🙂‍↕️

Bhavani Hadpad

Bhavani Hadpad

CA Inter

5K+

4

256

As 1 disclosure of accounting policies

Accountancy

answered on 21-Apr-25 12:28

Can I know by decreasing provision for non moving inventory how the profit is reduced?

latest answer

https://youtu.be/RoUMm8p7Jy8?t=1167

1 Minute Review

1 Minute Review

CA Inter

405

2

306

AS 10 - PPE [Exchange of Assets]

Accountancy

answered on 17-Apr-25 18:15

Question: I've attached a pic Doubt: Why can't the journal entry be like this? Cash/Bank a/c 15,000 Car Y 13,00,000 To Car X 13,00,000 To P&L 15,000 Is it wrong? If Yes, Why?

latest answer

If there is no commercial substance we can recognise profit.

Girinath A

Girinath A

CA Inter

765

1

223

Dissolution of partnership

Accountancy

answered on 17-Apr-25 16:57

what is the weightage of 'higher relative method', 'statement of distribution of cash' in dissolution of partnership? Is there a high chance that questions on these topics could appear in the exam? Would it be safe to skip them while preparing?

latest answer

Ok sir

Asmita Kar

Asmita Kar

CA Final

7K+

2

250

amount spent on lawyer's fee to defend land- how is it not capital expenditure?

Accountancy

answered on 16-Apr-25 11:23

when we are able to defend our land, are we not securing the future economic benefit? suppose we don't defend our land and spend the lawyer's fee, aren't we losing out on a potential economic benefit in the long term?

latest answer

Got it sir. Thank you

Anoushka Ravi

Anoushka Ravi

CA Foundation

2K+

6

374

Cash flow statements

Accountancy

answered on 16-Apr-25 13:59

This comes under which activity?

latest answer

Yes

meghana karnakanti

meghana karnakanti

CA Inter

21K+

4

323