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Replacement cost basis

Accountancy

answered on 09-Jan-21 18:39

How are liabilities valued at replacement cost. give examples

latest answer

Liabilities are valued at settlement value.

Aman Mahajan

Aman Mahajan

CA Final

19K+

1

517

Matching concept

Accountancy

answered on 08-Jan-21 12:12

How are bad debts an exception to the Matching concept?

latest answer

There is only expense/reduction in value of an asset. Income would have been recognised earlier.

Aman Mahajan

Aman Mahajan

CA Final

19K+

1

522

Insurance Claims

Accountancy

answered on 08-Jan-21 10:34

if trend percentage not given in the insurance claims sum, then what should do and how to calculate trend percentage?

latest answer

Generally it would be given. Or by looking at sales for different years given in question, we can compute. If you have a specific question, let us know, we will help you out.

Parthiban S

Parthiban S

CA Inter

430

1

594

Rectification entry CA foundation

Accountancy

answered on 08-Jan-21 13:46

Q4 of rectification chapter (vi) adjustment - 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. also , it is a prior period adjustment why is it that we debit inventory and not the profit and loss adjustment a/c for the full sales amount recorded in the books in the previous year ?

latest answer

alright , understood . Thank you , sir

Siddharth Kulkarni

Siddharth Kulkarni

CA Final

28K+

2

3K+

Internal Reconstruction

Accountancy

answered on 07-Jan-21 18:06

Sir, In this question 3rd point underlined are we issuing 60 rs worth share for â?¹7.5 or Fresh share of â?¹7.5 each .

latest answer

It means that instead of taking shares of 60 each, they will take 4 shares 7.5 each.

M Naresh

M Naresh

CA Final

3K+

1

563

Insurance Company

Accountancy

answered on 07-Jan-21 17:56

Profit on Sale of Investment for a Fire Insurance Company. Will it be under the head Other Income in Revenue Account or Goes the PandL ? Do we consider it to be as part of business or other than business ?

latest answer

It's operating income for the insurance companies and others it's is other income

Kaveesh Sethi

Kaveesh Sethi

CA Inter

2K+

1

565

Schedule 3 balancesheet

Accountancy

answered on 07-Jan-21 18:16

Where we have to show bank overdraft sir

latest answer

Short term borrowings.

M Naresh

M Naresh

CA Final

3K+

3

526

Internal reconstruction

Accountancy

answered on 05-Jan-21 18:06

In point (iv) the debenture holders agreed to take part of freehold property at agreed figures and why the remaining balances revalued sir

latest answer

NO worries.

makthala venkateswarlu

makthala venkateswarlu

CA Foundation

510

2

570

Subsidiary books

Accountancy

answered on 08-Jan-21 15:16

Sir as you know in purchase book we will record credit purchase .now if we give money to our creditor how to fix this in purchase book or what to do to eliminate that creditor from purchase book.

latest answer

Crystal Clear sir thanks you

Shreesha .T.u

Shreesha .T.u

CA Foundation

2K+

4

655

Subsidiary books

Accountancy

answered on 05-Jan-21 15:43

Sir in real business world..if transaction are recorded in subsidiary book .should it again be recorded in journal..

latest answer

No. In real world, most companies use ERP and there is no concept of different set of books. You just do entry at one place and rest of the account posting is taken care of.

Shreesha .T.u

Shreesha .T.u

CA Foundation

2K+

1

556