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Capitalization of Removal Expenses

Accountancy

answered on 21-Nov-20 08:17

AS 10 clearly states that only expenses incurred till that date of commencement of usage of the asset are to be capitalised. However, in this case, an expense of future removal has been capitalized (May 2020- RTP). Can you please explain why and the logic?

latest answer

Decommissioning costs are also capitalised.

Suraj Narayanan

Suraj Narayanan

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Ledgers

Accountancy

answered on 21-Nov-20 09:51

Normally when we're asked to write concerned ledgers and given excluding bank transactions, there is no need to write up bank ledger na??

latest answer

Thank you

Susee Arunachalam

Susee Arunachalam

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Redemption of preference shares

Accountancy

answered on 20-Nov-20 13:23

Sir for calculating no of shares for fresh issue Should we divide the redeemed value by FV of equity shares or by FV+Premium at which it is issued

latest answer

Thanks sir

shivani lolla

shivani lolla

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Question 2 and question 4 related of Redemption of Preference shares

Accountancy

answered on 20-Nov-20 13:22

Sir in question 2 we have divided amount to be redeemed by FV of equity shares issued..whereas in question 4 we have divided the amount to be redeemed by FV+premium of equity shares issued... please explain why I am confused.

latest answer

Okay Sir... understood... Thank you

shivani lolla

shivani lolla

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Departmental accounts

Accountancy

answered on 21-Nov-20 10:12

What is logic behind this?

latest answer

Finished goods are transferred at market price.

Swathi Krishna

Swathi Krishna

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Department accounts

Accountancy

answered on 20-Nov-20 16:33

Why is carriage inward apportioned on the basis of purchases ?

latest answer

because that is the best cost driver.

Swathi Krishna

Swathi Krishna

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Financial statements

Accountancy

answered on 20-Nov-20 10:30

Sir for calculating percentages for dividend in case of inadequacy of profits as per declaration of dividend rules 2014 Dividend here means = dividend + dividend distribution tax or not ?

latest answer

Dividend.

Vanacharla Sai Pavan Kumar

Vanacharla Sai Pavan Kumar

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Investment

Accountancy

answered on 21-Nov-20 10:32

While finding out the weighted average cost , should we need to deduct the shares which are sold also? Why is the treatment different in this two questions? Please reply.

latest answer

Thax sir

Swathi Krishna

Swathi Krishna

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Doubt in "Goods sent on Sale or return basis"

Accountancy

answered on 20-Nov-20 08:24

Sir....... In practical question 4 in inventory chapter...... physical verification is done in 23rd June.....and stock value should be determined on 30th june........ in between 23rd and 30th goods sent on approval is 3,20,000 of which half of the goods were returned before 30th june.....but no information is available regarding the remaining half of the goods...... In solution.....what they have done is.....for the remaining half goods......cancellation of sales is made...... Now what my doubt is...... Should we do the Cancellation of sales only on the year end (or) it can be made in any other circumstances as above(question 4 of inventory)....

latest answer

It can be done at month end as well.

Girinath A

Girinath A

CA Inter

765

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AS2

Accountancy

answered on 20-Nov-20 10:03

If the model itself is removed wont the items that were required to manufacture that car model become useless and if so it cannot form part of inventory as it fails to sarisfy the defn. Of inventory? I mean shouldn't it be shown under current asset or non current asset as per its realization term? Please clarify

latest answer

It will be shown under inventory.

Venkatesh Rathinam

Venkatesh Rathinam

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