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Dept Accounts | Transfer at Cost- Why is there reserve?

Accountancy

answered on 22-Nov-20 01:11

MTP Nov 20: In the given case, the adjustments clearly say the transfer has been at cost. Why are we applying reserves then?

latest answer

Thank you sir

Suraj Narayanan

Suraj Narayanan

Qualified CA

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768

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

Qualified CA

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668

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

Qualified CA

26K+

2

808

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

CA Inter

1K+

2

781

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

CA Inter

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761

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

CA Final

8K+

3

653

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

CA Final

8K+

1

624

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

650

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

637

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

659