Forums
Not for profit organisation
Accountancy
answered on 14-Oct-21 10:37
Is Face value of investment and cost price different?? Or same ?? Also , interest on investment is computed on fave value or cost price ??here, cost price, I mean to say book value .
latest answer
no. The price at which you purchase would be the cost.
Reetikaa R
CA Final
★ 7K+
5
581
Partnership accounts
Accountancy
answered on 12-Oct-21 14:08
In memorandum revaluation account profit distributed old partner and loss distributed all partner (old & new) Why?????
latest answer
Ok now I understand Thank you ma'am
Sejal Shivani
CA Foundation
★ 5K+
7
1K+
Insurance claims
Accountancy
answered on 10-Oct-21 21:59
Can anyone say exactly What are unsured standing charges If in question there is trading and p&l account and from that how to identify insured standing charges and uninsured standing charges
latest answer
Below are broady standing charges that needs to be insured. Ones not insured, will be uninsured. Interest on Debentures, Mortgage Loans and Bank Overdrafts, Rent, Rates and Taxes (other than taxes which form part of net profit) Salaries of Permanent Staff and Wages to Skilled Employees, Boarding and Lodging of resident Directors and/or Manager, Directorsâ?? Fees, Unspecified Standing Charges [not exceeding 5% (five per cent) of the amount recoverable in respect of Specified Standing Charges]. Generally, in questions, you will have info about insured and uninsured. In few illustrations, they will give part information like - Out of the standing charges only such amount has been insured, and you will have P&L account given. Then you should first identify what expenses are standing in nature and then find uninsured. Example: In ICAI Illustration 11, they have given standing charges insured were 50k. From P&L, you find that administrative and finance charges are standing (as they are fixed in nature), there total is 1.8L, but since only 50k are are insured, 1.3L will be insured. Here, selling expenses will not be considered as standing as they are variable.
Sairam Reddy
CA Final
★ 10K+
2
538
Doubt in NPO
Accountancy
answered on 10-Oct-21 21:58
Please help me on solving attached question
latest answer
Thank you sir
Aarvi Shah
CA Foundation
★ 110
13
631
Departmental accounts
Accountancy
answered on 11-Oct-21 14:59
If the question contains (marked )then wt it indiactes? Does it mean that don't take transfers while calculating g.p% please explain??
latest answer
Nothing much, just that separate transfer figures help us in calculating stock reserve (Unrealised profit in stock of one department to whom transfers were made). In this paper, this is little tricky adjustment. It is similar to ICAI Illustration 7. But in ICAI illustration, shoes were being made out of leather supplied by finished leather department only. So, we would directly apply gp ratio to opening and closing stock. But here only some of ready made garment's requirement is met internally, rest is from usual market. So, you have to take an assumption how much of inter-department transfer material will be there in closing stock. I believe ratio of transfer to readymade department (5L) and purchases excl. transfer (1.5cr) by that department which comes out to be 3.33% can be taken as a fair assumption. So, for calculation of stock reserve, we will take stock value x 60% (as only 60% is dyed fabric) x 3.33% and then apply GP ratio on that. In ICAI illustration this 3.33% etc. was not relevant as entire material was received from other department so, basically we have 100% in that case. We should wait for ICAI suggested answers and understand how they have solved. Meanwhile, do look at above Illustration as mentioned. And practice similar question 4 in Practical Problems.
Lakki Kamu
CA Final
★ 4K+
1
622
Tax
Accountancy
answered on 09-Oct-21 17:07
What is the treatment of Tax paid in final account??
latest answer
Tax like GST if collected from customer and liability is pending to be paid, it will be Current liabilities, else if excess balance with us, its either short term advance or net off from current liabilities. Income Tax is deduction from PBT then PAT moved to Reserves & Surplus.
Dhakshana Dhakshana
CFA L2
★ 18K+
2
422
As-22
Accountancy
answered on 09-Oct-21 09:37
Why unamortised preliminary expense is a DTA .
latest answer
Under IT Act preliminary expenses are written over a period of 5 years i.e. only 20% of the preliminary expenses are written off every year. When company writes off more than 20% in their books, then there will be a creation of DTA as the tax liability under Income Tax would be higher than Book Profits.
Surya Prakash
CA Final
★ 19K+
1
455
Company account
Accountancy
answered on 09-Oct-21 10:17
How to study company accounts
latest answer
Ok bro
Ronak Kumar
CA Foundation
★ 350
5
487
Buyback of Shares -DEBT-EQUITY TEST .
Accountancy
answered on 09-Oct-21 09:11
i had a doubt relating to buyback , In ICAI module , ILLUSTRATION 3 of Exercise , Current Liabilities is INCLUDED as a part of DEBT in calculation OF DEBT-EQUITY RATIO TEST . Should current liability be included as a part of debt for such calculation ? Same way current maturities of long term borrowings which is a current liability has been taken as debt for calculation debt-equity ratio in illustration 12 by sir .
latest answer
Question will usually state the current portion of long term debt. Its always preferable to explain your solutions through assumptions made.
Hrishi Jain
CA Inter
★ 0
3
3K+
ACC
Accountancy
answered on 08-Oct-21 14:37
what is capital employed with your layman's examples also pls Anybudy ...
latest answer
Thanks bro
Bala Chandar
CA Final
★ 5K+
2
473