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As 3 cash flow statement
Accountancy
answered on 31-Aug-20 08:33
When accounting for an investment in an associate or a subsidiary or a joint venture an investor restricts it's reporting in the cash flow statement to cash flows between itself and the investee/jointventure for example cash flows relating to dividends and advance can you Please explain this
latest answer
Cash flow from investing activities is one of the sections on the cash flow statement that reports how much cash has been generated or spent from various investment-related activities in a specific period. Investing activities include purchases of physical assets, investments in securities, or the sale of securities or assets. Cash flows from interest and dividends received and paid should each be disclosed separately. Cash flows arising from interest paid and interest and dividends received in the case of a financial enterprise should be classified as cash flows arising from operating activities. In the case of other enterprises, cash flows arising from interest paid should be classified as cash flows from financing activities while interest and dividends received should be classified as cash flows from investing activities. Dividends paid should be classified as cash flows from financing activities. For example - Cash receipts from the repayment of advances and loans made to third parties (other than advances and loans of a financial enterprise).
Preetham Pai
CA Inter
★ 400
1
811
Why it is not credit balance as per pass Book ..?
Accountancy
answered on 28-Aug-20 12:10
In Bank reconciliation statement chapter .. in illustration 5 .. I got -20,758 as my answer , so it will become "credit balance as per pass Book" but icai answer is " debit balance as per pass Book"..I'm confused. Please clearly explain
latest answer
Yes sure, the answer is wrongly depicted in the study material It is credit balance or favourable balance as per pass book 20,758. If there is no error with regard to wrong credit of 20,000 it would show you credit balance of only Rs 758.
Hari Krishna
CA Foundation
★ 1K+
1
739
Why is not credit balance as per passbook ?
Accountancy
answered on 28-Aug-20 12:35
In Bank reconciliation statement chapter .. in illustration 5 .. I got -20,758 as my answer , so it will become "credit balance as per pass Book" but icai answer is " debit balance as per pass Book"..I'm confused. Please clearly explain
latest answer
It is wrongly stated to be debit balance as per pass book in the material. It should be Rs.20,758 Credit balance as per pass book and Debit balance as per Cash book.
Hari Krishna
CA Foundation
★ 1K+
1
642
Amalgamation of companies
Accountancy
answered on 27-Aug-20 12:57
Ill 9(ICAI study material) Adjustment 4 Why they do for this journal enry?
latest answer
Mutual owing are cancelled as P Ltd and Q Ltd are amalgamating into 1 company. The liquidation expenses of P Ltd paid by Q Ltd is over and above the consideration payable to Q Ltd. It is treated as Goodwill. As we have capital reserve balance, it is adjusted with Goodwill, to get the net effect of amalgamation.
Gomathi K
CA Final
★ 40K+
1
624
Depreciation
Accountancy
answered on 27-Aug-20 16:36
Is provision for depreciation is current liability? In case it is current liability then what is the reason
latest answer
Under classification of accounts there are i) personal a/c's ii) Real a/c's iii) Nominal a/c's iv) valuation a/c's Here your doubt is about valuation a/c's These are the accounts which are created to show assets or liabilities at their original values (for clear presentation of financial statements). These accounts doesn't have any nature of assets or liabilities but they are just opposite to their original or source accounts (in terms of posting entries like debit and credit). Examples are prov for dep, prov for bad and doubtful debts, reserve for creditors etc., If clearly shows what is the cost at which it is purchased and accumulated depreciation details.... Hope it helps!!!
Akshay jerry
CA Inter
★ 10
2
992
Banking co.
Accountancy
answered on 26-Aug-20 22:01
How come the fixed asset is added with the depreciation amount in this problem ?
latest answer
The closing balance of the asset is 70.12(cost given in question) and the depreciation thereof is 0.78 which makes the opening balance 70.9 Thus Fixed asset balance in balance sheet(in Solution) 70.12 + 155.7 = 225.82
anamika vardhan
CA Inter
★ 1K+
3
619
Accounting standard-4
Accountancy
answered on 27-Aug-20 06:18
How proposed dividend should be disclosed ?
latest answer
As per the Ministry of Corporate Affairs Notification dated 6th April 2016, regarding Amended Schedule III to Companies Act 2013, in lieu of amendment in AS 4 by ICAI, the treatment of Proposed dividend in the Balance Sheet of a company prepared as per Schedule III of the Companies Act shall be a Contingency - Events Occurring after the Balance Sheet Date. As per the amendment made in Accounting Standard 4, dividend proposed for a year is not a liability till it has been approved by the shareholders. Thus, proposed dividend is not shown as a short-term provision in the current Balance Sheet of a company but disclosed in Notes to Accounts. under Contingent Liabilities.
anamika vardhan
CA Inter
★ 1K+
1
2K+
Insurance co.
Accountancy
answered on 27-Aug-20 06:22
How income is calculated in illustration no.5 ??
latest answer
Is your doubt as to how Gross profit is calculated?
anamika vardhan
CA Inter
★ 1K+
1
600
Insurance co.
Accountancy
answered on 27-Aug-20 18:31
Whether due to re-insurer item appear in schedule 13 in balance sheet ??
latest answer
Dues to re-insurer should be part of Schedule 2 under commission expense as it is operating expenses and not under Schedule 3.
anamika vardhan
CA Inter
★ 1K+
1
669
Consignment
Accountancy
answered on 26-Aug-20 12:43
Do we have to do the books of consignee as well in the exam?
latest answer
Okay thank you
Sampath B
CA Final
★ 21K+
4
621