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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
CA Inter
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2
739
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
CA Foundation
★ 2K+
3
769
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
CA Final
★ 15K+
1
646
Journal
Accountancy
answered on 22-May-21 15:48
Sir can you explain 2 nd question
latest answer
Understood sir
siva chaitanya
CA Final
★ 13K+
5
656
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
CA Final
★ 5K+
5
624
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
CA Inter
★ 200
4
647
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
CA Final
★ 28K+
7
934
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
CA Inter
★ 13K+
9
695
Branch Accounts - Debtors Method Illustration -3
Accountancy
answered on 17-May-21 10:29
Goods sent we recorded as 2,40,000 Loading we have reduced as 40000 ( which is 20%) Goods in Transit we have recorded as 20000 in closing stock And we debited Rs 8000/- in closing stock loading ( Stock + Closing stock) Since we have already credited loading of 40000/- why should we again debit loading for the value of goods in transit
latest answer
Yes exactly :)
sai krishna teja
CA Inter
★ 940
3
927
Depreciation
Accountancy
answered on 16-May-21 09:42
Is revaluation of assets part of the syllabus?
latest answer
Its the Syllabus
Siddharth Kulkarni
CA Final
★ 28K+
2
734