powered by logo

Forums

AS 22

Accountancy

answered on 06-Jul-24 12:19

As per AS 22 , the business has loss say 100,000 RS and it is virtually certain that the company would have sufficient profit in the future. The loss can be carried forward for 8 yrs. Tax rate 40%.Why are we claiming 40000RS as deferred tax asset for the year 1?If there is a loss and we aren't paying tax for it why is it a deferred tax asset?

latest answer

Because we would save tax in future. So there is a benefit in future because of current year loss

Niveta Rajkumar

Niveta Rajkumar

CA Inter

6K+

1

326

AS15

Accountancy

answered on 03-Jul-24 15:20

Under AS 15 "employee benefits" what all are the items to be recorded in P&L a/c and balance sheet each year?

latest answer

The following items need to be disclosed in the Balance Sheet: Defined Benefit Obligation: The present value of the defined benefit obligation. Fair Value of Plan Assets: The fair value of plan assets at the balance sheet date. Net Defined Benefit Liability or Asset: The net total of the defined benefit obligation and the fair value of plan assets. Unrecognized Past Service Cost: Past service cost that has not yet been recognized. Actuarial Gains and Losses Not Recognized: Actuarial gains and losses not recognized in the balance sheet but disclosed in the notes.

Niveta Rajkumar

Niveta Rajkumar

CA Inter

6K+

2

350

AS 13

Accountancy

answered on 03-Jul-24 16:15

As per AS 13 when we acquire an investment for exchange of an asset if FMV of asset given up and FMV of asset acquired both are given , which one should we consider as cost of acquisition? Is the answer same for AS 10 PPE also ? If yes why?

latest answer

AS 13 - First preference FV of asset given up. If FV of asset received is more evident, use that. AS 10 - Similar treatment. First preference FV of asset given up. If FV of asset received is more evident, use that.

Niveta Rajkumar

Niveta Rajkumar

CA Inter

6K+

2

255

AS 15

Accountancy

answered on 03-Jul-24 16:13

Couldn't understand why we are reducing net impact of unamortised costs (12.5 l)from gain on impact of curtailment (500l).Why not subtract 100 l from gain on impact of curtailment(500 l) directly ?

latest answer

100 is for total Gross obligation. So we are reducing proportionately for 500.

Niveta Rajkumar

Niveta Rajkumar

CA Inter

6K+

1

363

Final account

Accountancy

answered on 12-Jul-24 11:38

I want to know treatment of bad debts, discount on debtors and discount on creditors

latest answer

For calculation of debtors, Reduce landlord amount and goods sent on approval. From that amount reduce the bad debts ANd then calculate provision for bad debts.

Sathya S

Sathya S

CA Foundation

3K+

1

262

Discount received

Accountancy

answered on 12-Jul-24 11:51

Why discount received is debited with p/l account

latest answer

for debtors, we give discount which is an expense.

Sathya S

Sathya S

CA Foundation

3K+

1

240

Journal entries in final account

Accountancy

answered on 27-Jun-24 17:22

In final account journal entries sales, return outward,are debited and why trading account is credited

latest answer

Initially when sales or return outward takes place. The journal entries will be cash/ debtor account debit TO sales/ return outward account. Now while finalizing the Books of accounts all the nominal accounts should be closed and transferred to trading and p&l. Hence sale/ return outward which normally hold a credit balance is closed by debiting the sales/ return outward account and crediting the p&l account

Sathya S

Sathya S

CA Foundation

3K+

1

282

Adding purchase and closing stock

Accountancy

answered on 27-Jun-24 18:51

Why closing stock is added to purchase when closing stock exist in trial balance

latest answer

When closing stock is existed in the trail balance, it means that from the total purchases of the accounting period the unsold stock has been deducted and shown as asset . If there want to get total purchases there have to add back closing stock whcih deducted earlier.

Sathya S

Sathya S

CA Foundation

3K+

2

467

basic of accounting

Accountancy

answered on 27-Jun-24 21:28

difference between the purchase returns and sale returns

latest answer

Purchase returns is an expense going down so it's a credit. Sales return is an income going down so it's debit.

Akshara Agrawal

Akshara Agrawal

CA Foundation

180

2

248

Indirect tax

Accountancy

answered on 26-Jun-24 11:47

Why is it that the dealer cannot charge CST against CST if he does not charge ED?

latest answer

Different states were involved. So set off was not allowed.

Devika Venu

Devika Venu

CA Foundation

5

1

286