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Common mistakes

Accountancy

answered on 13-Oct-25 22:36

Sir i dont get that how capital reserve is getting debited for liquidation expense. [Video Time Stamp: 10:30]

latest answer

If the buying company incurs liquidation expenses - it's like an additional payment. Say net assets = 1000 Purchase consideration = 900 Capital reserve = 100 On top of it the buying company incurs liquidation expenses of Rs. 20. So in effect the company incurred 920 to acquire net assets of 1000. So capital reserve is 80. Since we recorded capital reserve at 100, now we are debiting it by 20.

Ajay Kumar

Ajay Kumar

CA Foundation

1K+

1

78

AMALGAMATION - ILLUSTRATION 1

Accountancy

answered on 13-Oct-25 22:38

In the material, it is not given that Y Ltd made entries at par value but in answer it is taken par value not intrinsic value. Why is that ? [Video Time Stamp: 15:03]

latest answer

The study material has made an assumption that it is to be made at par value. Refer illustration 3 of ICAI material

Ajay Kumar

Ajay Kumar

CA Foundation

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78

Lease Schedule

Accountancy

answered on 13-Oct-25 22:42

in example 3, for year 5, payment is taken at 50000 but in the textbook it is 75000. it says assuming zero residual value, but 25000 is considered [Video Time Stamp: 12:33]

latest answer

It looks like a typo error in ICAI material. All these variations have been covered in class- That is more than sufficient.

Ritu Kotian

Ritu Kotian

CA Inter

12K+

3

74

Ways to record transaction

Accountancy

answered on 13-Oct-25 22:43

Sir as you said grocery shop person will write the names of the person aswell who will pay money to them...just like that we suppose that children bought something and didn't paid money...so in that case it will be written in the book that children bought these items on this day and there parents will pay afterwards?

latest answer

Yes. Generally it will be recorded in parent's name since minor cannot be held liable.

Anushri Mathur

Anushri Mathur

CA Foundation

0

1

58

Illustrations PDF

Accountancy

answered on 09-Oct-25 14:32

the questions in the textbook are different. is it possible to get a copy of these illustrations please [Video Time Stamp: 00:08]

latest answer

thank you

Ritu Kotian

Ritu Kotian

CA Inter

12K+

2

73

Getting wrong answer

Accountancy

answered on 08-Oct-25 16:54

12,70,000 - 72,000 - 6,05,000-30,000 =5,63,000 But in the books and video there is 5,75,000 Explain me [Video Time Stamp: 11:13]

latest answer

It is correct only. purchase returns should be reduced from the purchases. So the gross profit will be 6,23,000

Manikanta Abhiram

Manikanta Abhiram

CA Foundation

0

1

61

Amalgamation exps

Accountancy

answered on 09-Oct-25 10:02

Is it optional to journal entry amalgamation expenses or we can leave it and also illustration 5 of study material - interest is due ,we have to transfer interest to realisation account or entry for payment anything is not given in additional information

latest answer

If amalgamation expense details are given - you need to journal it. Interest payable - this might be taken over by the purchasing company. If it is paid by the selling company, you can transfer to realisation account and then pass the payment entry Realisation A/c Dr. To Bank A/c

Anushka Kumawat

Anushka Kumawat

CA Inter

0

1

59

AS-12

Accountancy

answered on 06-Oct-25 14:15

Can I get the AS 12 explanation video

latest answer

Its included as a part of your course. Let me know which specific aspect you are looking at.

Snehashis Mohanty

Snehashis Mohanty

CA Inter

35

1

49

Illustration 8

Accountancy

answered on 07-Oct-25 13:57

In the trading p and l account in the books of branch, whether the stock should always be valued at cost price ? or invoice price ? [Video Time Stamp: 10:50]

latest answer

In trading P&L account method, we consider it at cost.

Ajay Kumar

Ajay Kumar

CA Foundation

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56

AS 20 - Rights issue

Accountancy

answered on 07-Oct-25 13:58

Illustration 4 in study material. For EPS calculation of year 2, I didn’t understand the time weighting factor considered. Please clarify. Photos attached below

latest answer

For time weighting factor, We consider Right adjustment element till the date of rights issue - this is time weighted separately for number of months from beginning of month till date of right issue After shares are issued, we consider total shares for remaining months.

Ritu Kotian

Ritu Kotian

CA Inter

12K+

1

63