Forums

Doubt

Accountancy

answered on 24-May-21 13:20

In this question of cash flow statement plant and machinery adjustment what I did is different with that of presentation on book also my answer doesn't match can u pls refer where iam doing the mistakes

latest answer

Thank you sir

Sri kanaga Varshini

Sri kanaga Varshini

CA Final

3K+

2

433

Departmental accounting

Accountancy

answered on 25-May-21 18:33

Pls ans this question

latest answer

Ok thank you

Maha

Maha

CA Inter

0

7

491

As 16

Accountancy

answered on 23-May-21 17:35

If a specific loan has been incurred for construction of a qualifying asset (say 50000 @ 10%p.a) and asset got constructed at an expenditure of just 25000. How much amount of borrowing cost would be eligible for capitalization? My opinion is that only only 2500 (25000*10%) can be capitalized , which is directly attributable to construction cost The confusion arises because text of as 16 on specific borrowing states that "To the extent that funds are borrowed specifically for obtaining a qualifying asset,the amount of borrowing cost eligible for capitalization on that asset should be determined as the actual borrowing cost incurred on that borrowing during the period less any income on the temporary investments in those borrowing" actual borrowing cost is 5000 (10%of 50000) Plz clarify

latest answer

Ok tnq sir

Abhishek Purohit

Abhishek Purohit

CA Inter

10K+

2

583

Reserve

Accountancy

answered on 23-May-21 09:50

In memorandum of reserve calculations in admission of new partner for balance sheet reserve what is the treatment.

latest answer

General reserve is credited to old partners in old profit sharing ratio because it is the profit earned by them and they are worthy of it

Shreesha .T.u

Shreesha .T.u

CA Foundation

2K+

3

536

AS 20

Accountancy

answered on 22-May-21 16:22

Please clarify what and how this 4/3 came into picture, though they have given an explanation beneath i could not get it

latest answer

For every 3 shares you had, you got one share extra as bonus. Suppose, you are having 3 shares. Company gave bonus of 1 share. It means now you are having 4 shares (original 3 + bonus 1) Hence, while calculating EPS, we have to take 4/3

Venkatesh Rathinam

Venkatesh Rathinam

CA Final

15K+

1

452

Journal

Accountancy

answered on 22-May-21 15:48

Sir can you explain 2 nd question

latest answer

Understood sir

siva chaitanya

siva chaitanya

CA Final

13K+

5

495

Underlined sentence

Accountancy

answered on 21-May-21 13:33

How The interest of outsiders is not affected if there is no reduction in shareholders fund

latest answer

At the time of winding up, outsiders are paid first out of the asset proceeds. It's only then the remaining amount is distributed to shareholders. Example, at the lime of lending, outsider saw, okay this company has 10 lakh of assets and 5 lakh of equity and 5 lakh of preference share capital, so I will lend 3 lakh, as even if losses are made, I will get the amount as there is sufficient buffer. Now if say preference shares are redeemed, pool of funds gets reduced, security cover for lender will also fall.

Gauri Shete

Gauri Shete

CA Final

4K+

5

481

Cash flow statement

Accountancy

answered on 21-May-21 11:56

How to treat the tax item in case of net profit before tax and after tax??

latest answer

Thank you so much sir for clearing my doubt.

Sainisha Ramesh

Sainisha Ramesh

CA Inter

200

4

501

Retirement Of partner - illustration 3

Accountancy

answered on 27-May-21 19:52

Here, the goodwill I the balance sheet is written off in 5:4:3 ratio, and not 3:4:4 ratio, why is that?

latest answer

May be some mistake in the material. The actual ratio will be 3:4:4.

Siddharth Kulkarni

Siddharth Kulkarni

CA Final

28K+

7

644

Final accounts

Accountancy

answered on 22-May-21 16:32

Sir it is clearly said that net purchases is transferred to trading account Why do we again show in trading account As to purchases less returns

latest answer

Thank you mam

Prasanth Kumar

Prasanth Kumar

CA Inter

13K+

9

532