Forums
Substance over form
Accountancy
answered on 23-Mar-21 18:13
Please explain the concept of substance over form with an example
latest answer
don't know if this is correct , In an installment purchase we depreciate our asset even before we own the asset legally
Sri Janani
CA Inter
★ 0
4
498
AS 4
Accountancy
answered on 20-Mar-21 20:48
Can anyone explain highlighted point
latest answer
As per AS 4, adjustments arenâ??t required to assets and liabilities for events which occur after balance sheet date, in case such events donâ??t relate to the conditions which existed at balance sheet date. Assets are the existing resources of an enterprise, that give future inflow upon their use. Since, the cheques were received only after 31st March, till that date there was no event which indicated that there is an inflow of economic benefit. Hence this have been treated as a non-adjusting event
Enuguru Sai Nithin
CA Final
★ 78K+
1
635
AS 11
Accountancy
answered on 20-Mar-21 20:51
why Does net investment of reporting entity in Integral foreign operations not affected due to change in foreign exchange rates?
latest answer
Temp changes in values of investment in integral foreign operations due to forex rate changes are not adjusted, Because if intention is to hold on to investment, such changes donâ??t matter
Kumar Sarthak
CMA Final
★ 12K+
4
524
Partnership unit 2
Accountancy
answered on 22-Mar-21 16:18
In illustration 1 we found realisation profit by crediting excess amount and debiting deficit amount taken And then less provision realisation profit came . But in practice problem 1 they did it by calculating pc and and transfer it to realisation and found profit . But when I did practice problem in illustration 1 model revaluation profit answer is not matching with book . Please any one reply
latest answer
The difference is because of Goodwill which is dealt in separate working note in each problem. Once you do the entire sum in earlier method, the final balance sheet will be same. The same note is also given at the end of practice problem.
Enuguru Sai Nithin
CA Final
★ 78K+
6
517
Going concern
Accountancy
answered on 20-Mar-21 11:39
What is the answer of this question please anyone answer
latest answer
As per SA 570: Managementâ??s assessment of the entityâ??s ability to continue as a going concern involves making a judgment, at a particular point in time, about inherently uncertain future outcomes of events or conditions. The following factors are relevant to that judgment: â?¢ The degree of uncertainty associated with the outcome of an event or condition increases significantly the further into the future an event or condition or the outcome occurs. For that reason, most financial reporting frameworks that require an explicit management assessment specify the period for which management is required to take into account all available information. â?¢ The size and complexity of the entity, the nature and condition of its business and the degree to which it is affected by external factors affect the judgment regarding the outcome of events or conditions. â?¢ Any judgment about the future is based on information available at the time at which the judgment is made. Subsequent events may result in outcomes that are inconsistent with judgments that were reasonable at the time they were made.
Laxman kumar
CA Final
★ 4K+
3
463
Doubt
Accountancy
answered on 19-Mar-21 16:28
Can we write this as single entry...??? Bank a/c...dr P&L a/c.... dr To investment a/c Is there any benefit on Creating seperate account "Loss on sale of investment"????
latest answer
However as a matter of better practice, we do not debit P&L account directly in the source entry. Else at a later point in time, you will not be able to identify what is the loss on sale of investment in the entire year.
ALDRIN G
CA Inter
★ 12K+
2
534
REDEMPTION OF PREFERENCE SHARES
Accountancy
answered on 18-Mar-21 17:23
If shares are not fully paid up, company will redeem shares only when it is fully paid up but while forfeiting the shares they cancel it instead of reissuing since the redemption due in near future.......why does the same forfeiting concept does not apply when the shares are not fully paid up??
latest answer
It may so happen that company itself has not called up part money and hence, shares are not fully paid up. So, law says all calls must be made up and shares fully paid up before redemption. In case of forfeiture, it's the shareholder's default and hence shares are forfeited and cancelled.
GOKULA LAKSHMI
CA Final
★ 21K+
2
548
BRS
Accountancy
answered on 17-Mar-21 19:34
Bank charges of â?¹ 600 as per Bank Statement have not been recorded in the Cash Book. These bank charges were reversed by the bank on 10th April, 2019. No adjustment is required in BRS?
latest answer
Yes no need to adjust as we are preparing BRS at 30th April
siva chaitanya
CA Final
★ 13K+
2
496
Admission of partner
Accountancy
answered on 17-Mar-21 12:15
Sir can you explain why that underlined entry has been credited to revaluation account
latest answer
So in the given question trade payable already contains 1,400 init so it should be deducted (Decreasing in value of liability) it should be debited and revaluation account should be credited Sorry I was busy with some other work and didn't see the question properly
siva chaitanya
CA Final
★ 13K+
6
618
Doubt regarding the first chapter - framework
Accountancy
answered on 17-Mar-21 10:36
This question might sound very basic but i would like to know the reason for it. Why does the P&l a/c doesn't contain gross profit?
latest answer
Thank you so much for clearing my doubt.
Sainisha Ramesh
CA Inter
★ 200
2
476