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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

CA Final

8K+

1

544

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

CA Final

8K+

13

541

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

1

540

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

CA Final

15K+

5

597

Investment Accounts

Accountancy

answered on 19-Nov-20 15:15

Sir , In most of the Sums The sale value of investment is credited in investment Account And corresponding effect is given to profit Can we credit with cost and profit element should transfer to P&L A/c sir. Is this alternative presentation is acceptable sir ?

latest answer

In exams you will not have a separate ledger to account for profit.

M Naresh

M Naresh

CA Final

3K+

1

582

AS 1

Accountancy

answered on 22-Nov-20 08:20

In this answer why closing stock is valued at net realizable value because generally closing stock is valued at cost on net realizable value whichever is lower

latest answer

If not a going concern, no benefit in future.

subramanyam yendakuarthi

subramanyam yendakuarthi

CMA Final

4K+

3

784

Redemption of preference shares

Accountancy

answered on 19-Nov-20 11:05

On redeeming preferences by using Divisible profit we cannot use capital reserve because we can use them for distributing divided, am I right sir

latest answer

Thank you sir

SREEABITHA SENTHILKUMAR

SREEABITHA SENTHILKUMAR

CA Inter

1K+

3

603

Doubt

Accountancy

answered on 18-Nov-20 19:42

Sir if gross profit on cost is 30% then how much on sales?

latest answer

Assume cost is 100 then 100+ 30 = sales price = 130 Profit as % of sales = 30/130 = 23.07%

Sri kanaga Varshini

Sri kanaga Varshini

CA Final

3K+

1

630

AS 11

Accountancy

answered on 20-Nov-20 09:59

Shouldn't we restate to 47.15 on 31 December and then take the difference of profit or loss . As the books are closed on 31st December

latest answer

Gain or loss will be booked on 31st December if books are closed.

Swathi Krishna

Swathi Krishna

CA Final

8K+

4

581

AS 11

Accountancy

answered on 20-Nov-20 09:33

In the this entry can we debit p&l a/c ?

latest answer

K thank you sir

Swathi Krishna

Swathi Krishna

CA Final

8K+

2

673