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Final accounts

Accountancy

answered on 29-Sep-20 13:02

Is provision for bad and doubtful debts a debit balance or credit balance?? What is the impact of this in p&l a/c and balance sheet??

latest answer

In P&L a/c provision for debtors is debited and in balance sheet it is deducted from debtors

Pooja .

Pooja .

CA Final

210

1

623

Shares issue

Accountancy

answered on 29-Sep-20 17:55

Shares are discounted on face value or on called up value? For example- if a share has face value of â?¹10 and is called up for â?¹6 and given 10% discount, discount is on â?¹10 or â?¹6?

latest answer

Actually question is invalid as per law. Anyways, consider the discount portion along with application.

Ankush R

Ankush R

CA Inter

33K+

5

648

Impairment loss

Accountancy

answered on 28-Sep-20 16:22

Impairment loss is a Timing difference or Permanent difference??

latest answer

Timing. In future there would be loss when the impaired asset is actually sold.

Shravan Kumar

Shravan Kumar

CA Inter

25K+

1

557

UNAMORTISED PRELIMINARY EXPENSES

Accountancy

answered on 28-Sep-20 16:20

UNAMORTISED PRELIMINARY EXPENSES are DTA OR DTL?IF YES HOW

latest answer

Preliminary expenses are charged to P&L. For tax they are allowed over a 5 year period. Tax will be less in future - hence a benefit - hence DTA.

Shravan Kumar

Shravan Kumar

CA Inter

25K+

1

510

Rtp may2019-AS 19

Accountancy

answered on 28-Sep-20 06:47

How is this computation possible ? I didn't understand the logic behind this computation.

latest answer

The return for lessor is 10%. The lessor would get lease payments + unguaranteed residual value. The present value of lease payments + present value of unguaranteed residual value should be equal to the fair value.

Swathi Krishna

Swathi Krishna

CA Final

8K+

1

555

AS19

Accountancy

answered on 28-Sep-20 06:49

In sale and leaseback, what is the logic(general) behind the amortisation of profits / loss ,as the case may be

latest answer

Sale and lease back is a structured transaction. I can sell the asset at a higher profit (above its fair value) and take it back on lease at a higher rental. Because i sold at a higher price, i will show higher profits. But the reality is that i will pay higher rent in future. So to ensure that profit and losses are reported properly, amortisation is done.

Swathi Krishna

Swathi Krishna

CA Final

8K+

1

502

NBFC PROVISIONAL RATES

Accountancy

answered on 27-Sep-20 09:04

friends ..can anyone share updated NBFC provision rates pls?

latest answer

You can refer to the latest study material.

Vishwanath Tadur

Vishwanath Tadur

CA Inter

2K+

1

542

Brs

Accountancy

answered on 27-Sep-20 20:29

Dishonor of a bill discounted with bank What if the bill is honoured Also bills collected by bank on behalf of a customer

latest answer

For entries for Bills of exchange, please refer to videos of Bills of Exchange chapter. They are also covered in pages 6.5 & 6.6 of ICAI Study Material. Link below and pages also are attached herewith https://resource.cdn.icai.org/55003bosfndnov19-p1-cp6u1.pdf What happens in BRS depends on the fact if the entity accounted or not. If both bank and the entity passed entries there is no reconciliation. If bank passed but entity did not pass entry then in the BRS , such amount should be reduced from Balance in Bank account as per books of entity in order to arrive balance as per bank.

Prasanth Kumar

Prasanth Kumar

CA Inter

13K+

7

616

Internal reconstruction

Accountancy

answered on 26-Sep-20 08:17

Sir illustration 3 of ICAI material Explain Cash and cash equivalents balance amount

latest answer

Tq sir

Prasanna Jannu

Prasanna Jannu

CA Inter

7K+

2

530

Debenture

Accountancy

answered on 26-Sep-20 10:37

Is this format mandatory, in case own debentures ? If so, Why is the interest portion separately shown in own debentures a/c ?

latest answer

K

Swathi Krishna

Swathi Krishna

CA Final

8K+

2

543