Why salary and interest on non trading investments are added and subtracted from this sum?

answered on 17-Mar-20 16:42

By my understanding salary should be reduced from profit right, instead why they are adding it? For Interest on non trading investments isn't we assume that it's already added to profit right? They have not given any indication that profit does not include interest

latest answer

Ty. U r a life saver.

Gokul Nath

CA Inter

★ 605

2

993

MARKING SCHEME

answered on 17-Mar-20 16:27

How many marks might be deducted for not writing narration of journal entries in a 15 marks question of advance accounts where we have to pass journal entries and prepare balance sheet?

latest answer

1-2 marks. Write brief narration.

Laxman kumar

CA Final

★ 4K+

1

753

AS-10

answered on 27-Apr-20 21:47

Sir, in as-2 ,ppe definition starts with, ppe are tangible items....... So on. Then why we write intangible assets under the head of PPE in balance sheet under schedule-III

latest answer

Accounting standards cover computations , measurement , accounting treatment as well as disclosures. Disclosures are also covered by SCH III. The item specifically highlighted by you is covered by SCH III. Secondly Companies Act is a legislation. AS are pronouncement of ICAI. Legislation over rides pronouncements.

Star Ca

CA Inter

★ 3K+

3

655

Esop

answered on 22-Mar-20 20:07

Sir, is stock options outstanding a liability?? .

latest answer

ESOP will be opened for a term as prescribed by the management, those eligible participants can apply for their share... the term mentioned above will be one or two year as the case maybe. Thus, while closing the accounts at the end of a period the amount charged to ESOP outstanding account will be liability since, it is a liability of company upon allotment of shares. And you had asked that the definition of the liability there should be an outflow of resources, here the amount standing to outstanding ESOP account is charged to P&L account, thus there is an expensing of such amount. I hope that your query is clear. If there is any mistakes please feel free to correct me since im too a student.

Star Ca

CA Inter

★ 3K+

3

639

AS 26 on Intangible Assets

answered on 04-Oct-20 11:33

In the video clip titled QnA 2, Satyaraghu Sir has discussed about the PV of benefit over future economic life for the development expenditure. But when and where did he discuss same while explaining about the Development Phase Expenditure?

latest answer

Exactly!

Rahul Sharma

CA Inter

★ 3K+

4

597

AS 26 - Intangible Asset (Video editing error)

answered on 06-Apr-20 11:40

Dear IndigoLearn Team, In the video with a title "IndAS 38 - 1" at 05:48, Satyaraghu Sir speaks about reading principles related to recording of an Intangible Asset at Fair Value as per IndAS 38. But the clip is edited, that portion is missing in the video and it directly starts at 05:49 another point of discussion.

latest answer

We have updated the video. Thank you for pointing out.

Rahul Sharma

CA Inter

★ 3K+

2

594

The video quality

answered on 13-Mar-20 12:41

because of the video quality the video buffers a lot and creates a lot of problem and disturbance

latest answer

Once the video starts, you can choose lower quality option. There will be marginal quality difference. Buffering happens when the network connectivity is poor, if the network connectivity is good, it will play seamless.

Sonia Mishra

CA Inter

★ 840

1

602

Branch accounts

answered on 12-May-20 10:50

In stock and debtors method, at one sum we transfer the excess sale over invoice price amt to Branch adjustment a/c and in another sum, we transfer it to Branch p&l a/c..which can we use in exams??

latest answer

Can you tell Which illustration ha sit transferred to Branch P&l?

Srini Sriram

CA Final

★ 4K+

1

580

Capital expenditure vs revenue expenditure

answered on 10-Mar-20 18:40

Generally replacement cost is regarded as revenue expenditure. I have a doubt in this regard, If an asset is purchased having life of 5 yrs and after using it for 3yrs replacing total asset with similar kind of asset, whether it turns to revenue or capital expenditure?? How the journal entries are made in the books?? Can anyone please help me out of this doubt!!!

latest answer

Then in which case replacement cost considered as revenue expense

VIJAYA SARADHI MAGANTI

CA Inter

★ 850

2

586

Accounting standard 5

answered on 09-Mar-20 19:30

How an ordinary item with exceptional nature will be treated as per AS5.?

latest answer

Disclose separately

mannem sai

CA Inter

★ 10

1

588