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Please Explain what is provision simple way

Accountancy

answered on 27-Sep-21 10:05

What is provision and why do we need provision in accounting and what is provision for bad debt and provision for depreciation

latest answer

Amount put aside from the profit in order to meet a probable future expense or a reduction in the asset value. Its an estimate

Dhakshana Dhakshana

Dhakshana Dhakshana

CFA L2

18K+

4

450

Loss of profit

Accountancy

answered on 27-Sep-21 10:14

How to interpret with increase of cost dur to increase of sales

latest answer

Could you clarify your query.

Krishna kumar

Krishna kumar

CA Final

9K+

1

367

Banking

Accountancy

answered on 26-Sep-21 05:39

What is the amount of statutory reserve? 20 or 25 percent

latest answer

At present it's 25%

Aman Mahajan

Aman Mahajan

CA Final

19K+

1

375

Profit prior to incorporation

Accountancy

answered on 25-Sep-21 18:36

Why interest on investment earned is allocated in pre incorporation period?

latest answer

Yeah.... I got....Thank you

Girinath A

Girinath A

CA Inter

765

3

446

Subsidiary Books

Accountancy

answered on 25-Sep-21 17:45

ICAI module has 2 formats of Purchases book , which to be followed ??

latest answer

Thx bro

Varun Mulay

Varun Mulay

CA Final

38K+

4

780

Bonus issue

Accountancy

answered on 25-Sep-21 16:44

A machine purchased in consideration of shares of company. Machinery a/c........DR. 1,50,000 TO share capital a/c. 1,00,000 TO securities premium. 50,000 Does these 50,000 in securities premium can be use for issue of bonus shares? As it is not realised in cash.

latest answer

The act does not prescribe such condition. SEBI has prescribed in its rules regarding security premium collected in cash. Now here, think of a situation where you would have issued shares to the person selliing machine and collected cash and again paid the same cash to buy the machine of 1,50,000 The idea behind restriction is that it should not be bookish or inflated.

Sairam Reddy

Sairam Reddy

CA Final

10K+

4

418

Profits prior to incorporation

Accountancy

answered on 25-Sep-21 16:15

In this illustration....... Why advertisement expense is apportioned on the basis time?

latest answer

Thank you sir

Girinath A

Girinath A

CA Inter

765

4

461

Linkage between chapters

Accountancy

answered on 25-Sep-21 16:04

Guys as I have started with AS 3 cash flow statement . But as you all know there are many concept of redemption of preference share and debentures . So my question is should I start with redemption of preference share and debentures so that I can get better grip on the questions of cashflow statement OR I should finish all Accounting standard first and then go on towards above chapters?

latest answer

Pls finish all AS given in videos and move to Accounting (Without AS) module.

Kalash Ojha

Kalash Ojha

CA Inter

465

5

452

Sharing ratio

Accountancy

answered on 25-Sep-21 22:08

If we multiply with 5/5 we get 1/25 I am getting the ratio as 7:5:3 1/5 Ã?3/3 = 3/15

latest answer

Thank you sir!

Doonika Chunduri

Doonika Chunduri

CA Inter

5K+

3

551

Departmental accounts

Accountancy

answered on 24-Sep-21 22:22

How to know per unit cost of opening stock and closing stock (board book illustration 2)

latest answer

We can find purchase price per unit as we are given Total purchase value and number of units + fact profit ratio is same. Check working note 1

OMKAR REDDY

OMKAR REDDY

CA Inter

6K+

1

404