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Accounting for Employee stock option

Accountancy

answered on 02-Jun-21 08:37

In these two problems in illustration 5, when the unvested options lapsed they reversed the liability in respect of the 4000shares that had accured till date..but in the other problem they dont do that but just recognise the excess liabilty that is to be made...I cant get the reason behind it, why is there two different treatments? I mean if what is followed in ill5 is to be followed in ill 6 then we should have recognised the entire 910000 as on 31.3.X3 and revesed the ESOS Acc to the extent of 515000 to general reserve isnt it?

latest answer

Yes. Prefer net basis as all other illustrations than 5, does it.

Venkatesh Rathinam

Venkatesh Rathinam

CA Final

15K+

5

607

If brs is given on 31 December in question should we prepare amended cash book?

Accountancy

answered on 01-Jun-21 12:17

How should we know year ending if it is given on 31 sr December? When should we prepare amended cash book if it is not mentioned in question?

latest answer

Yes. When to be prepared depends on the question.

MATURU HAMSA GAYATRI

MATURU HAMSA GAYATRI

CA Final

23K+

1

614

5 th question d point

Accountancy

answered on 31-May-21 21:32

In 5 th question d point whether it is deposit cheque or issue cheque?

latest answer

Issued cheque because question says "drawn by her"

MATURU HAMSA GAYATRI

MATURU HAMSA GAYATRI

CA Final

23K+

1

531

AS-18

Accountancy

answered on 31-May-21 15:57

Can transaction between employer and employee treated as related party transactions?

latest answer

Thank you sir!

srinidhi srinivas

srinidhi srinivas

CMA Final

8K+

2

551

Consolidation

Accountancy

answered on 01-Jun-21 17:04

Sir Do i want to read cross holding sums in consolidation in inter level?

latest answer

No. Cross-holding sums shall not be asked at Inter level

Pradeep Ravikumar

Pradeep Ravikumar

CA Final

1K+

3

628

AS 22

Accountancy

answered on 31-May-21 14:53

Sudharsan: Dear sir, My doubt is how the (1) question is deferred tax liability Income tax depn is less than a/cing depn so, pay now save later then it must be deferred tax asset only But they tell it is a dtl Depn low as per tax records = profits more = tax pay high= Save in future =so DTA According to my thought, but i didn't know whether it is correct

latest answer

https://youtu.be/WMJWDyKp3X0 Please watch the above video to understand it better

Suriya M

Suriya M

CA Final

31K+

3

613

Bonus issue

Accountancy

answered on 30-May-21 20:11

In authorised capital, whether we have to add issue of bonus share(subscribed) or issue of bonus share(authorised), because SM gave different treatment to different answers.Kindly clarify.

latest answer

Oh thankyou sir.

Madhaan S

Madhaan S

CA Final

14K+

3

619

Rectification of error

Accountancy

answered on 04-Jun-21 09:44

Goods worth 1,000 were sent on sale or return basis to a customer and entered in the Sales Book. At the close of the year, the customer still had the option to return the goods. The sale price was 25% above cost. Plz explain

latest answer

Deducted the sales and customer as per sir answer and added to stock on cost value

Gopal Garg

Gopal Garg

CFA L1

5K+

2

640

Doubt

Accountancy

answered on 31-May-21 21:31

In redemption of preference shares, when we redeem it by using the divisible profit for using that why dont we pass any entry by debiting the p&l account but we dr. The p&l account for transfering it to CRR? Pls clarify where do i misunderstood the concept..

latest answer

Ok sir thank u

Sri kanaga Varshini

Sri kanaga Varshini

CA Final

3K+

6

592

Rectification of error

Accountancy

answered on 31-May-21 11:17

A bad debt of 1,560 had not been written off and provision for doubtful debts should have been maintained at 10% of Trade receivables which are shown in the trial balance at 23,390 with a credit provision for bad debts at â?¹2,320. Plz explain.

latest answer

Will not be postponed until the institute takes a call.

Gopal Garg

Gopal Garg

CFA L1

5K+

3

5K+