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Preparation of financial statements
Accountancy
answered on 06-Aug-24 15:45
Icai material Pg no.11.45 Illustration 6 Even though it is not mentioned in the question to provide for interest on debentures We've shown it in the profit and loss account as finance cost Why is it not shown under other current liabilities ( assuming that it's payable)?
latest answer
Each entry has two parts 1. You will show expense 2. You will show payable - current liabilities.
Monika T
CA Final
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262
Consolidation of Financial Statements
Accountancy
answered on 06-Aug-24 11:21
in down stream transaction if the holding company sold goods at a loss to subsidiary, and the goods is lying unsold in the subsidiary company.Then what is the treatment given in consolidation?
latest answer
Eliminate the loss.
Niveta Rajkumar
CA Inter
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331
Dividend
Accountancy
answered on 07-Aug-24 00:07
Sir final dividend is liability in current year because we pay it in next FY. But interim dividend is an expense during the year, but why don't disclose it in expense side of P&L account ?
latest answer
Dividend is not an expense for the company, whether it is final or interim. Since FINAL DIVIDEND is announced in the AGM of the Company, it cannot be withdraw even by Unanimous Consent. That's why it acts as a liability. However still it is appropriation of profits not an charge on profits. But Interim Dividend Can be withdrawn by BOD as it is not approved by General Meeting yet.
Ajaykumar Parit
CA Inter
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403
AS5
Accountancy
answered on 06-Aug-24 07:41
If it's not a change in accounting policy then what will be classified as? Illustration 4 (Part i)
latest answer
Adhoc means there was no scheme or accounting policy, Here they have introduced new policies, it is not change in accounting policies, You can answer stating change in accounting policy definition, and conclude that it is introduction of new accounting policy and it cant be treated as change in accounting policy
Sagar Kathuria
CA Final
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AS 16
Accountancy
answered on 06-Aug-24 09:15
Why it's option b. Reason or method
latest answer
Cost = 52000 (cost + capitalised borrowing cost , 40000 + 12000) Nrv = 45000 We should always acc cost or nrv whichever is lower in this case the nrv is lower 45k but the ceiling limit amt is 45k which is nrv, so the cost + borrowing cost should be 45k we already have 40k as cost. So the excess 45k - 40k = 5k will be the borrowing cost
Lucky Ten
CA Inter
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3
389
Internal reconstruction
Accountancy
answered on 06-Aug-24 20:36
The balance of capital reduction is 907500. It should we used to write off loss and remaining to capital reserve right . Then why ,in the below sum .. some other amount is there. Kindly check and pls let me know
latest answer
Ohhh ok
Deborah Susaiyappan
CA Inter
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311
Sir this mobile battery issues I want switch this device classes to other mobile what is the process
Accountancy
answered on 05-Aug-24 11:04
Sir this mobile battery issues I want switch this device classes to other mobile what is the process
latest answer
We received your mail, Your Issue is resolved.
R G
CA Final
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233
AS13
Accountancy
answered on 05-Aug-24 12:13
Why is exchange loss transferred to foreign exchange difference account and not P&L?
latest answer
The exchange difference are not recognized in P&L a/c because the change in exchange rates have little or no direct effect on present & future cash flows from operations
Sagar Kathuria
CA Final
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291
Balance sheet
Accountancy
answered on 05-Aug-24 12:54
At what value assets are normally shown in balance sheet historical cost/revalued cost? If an asset is shown in historical cost later can it be shown in revalued amounts in the balance sheet or should continue to be shown as historical cost only.? if shown at revalued cost what is the accounting treatment?
latest answer
Assets are typically shown in the balance sheet at their historical cost, which is the original purchase price or cost incurred to acquire the asset. Assets can be shown at revalued amounts following the principles of AS-10. ONce you complete AS-10, you will understand this. Brief explanation is given below. When an asset is shown at its revalued amount, the following accounting treatment is applied: Revaluation Increase: If the revaluation increases the asset's carrying amount, the increase is credited to Revaluation Surplus unless it reverses a previous revaluation decrease recognized in profit or loss. If it reverses a revaluation decrease recognized previously in profit or loss, the increase is recognized in profit or loss to the extent of that decrease. Revaluation Decrease: If the revaluation decreases the asset's carrying amount, the decrease is recognized in profit or loss, unless it reverses a previous revaluation surplus . If it reverses a revaluation surplus, the decrease is debited to revaluation surplus, reducing the revaluation surplus to the extent of any credit balance existing in the revaluation surplus for that asset.
Niveta Rajkumar
CA Inter
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338
AS 3
Accountancy
answered on 05-Aug-24 12:15
Why have we deducted interest paid and added interest received since we are following direct method?
latest answer
Follow indirect method
Sagar Kathuria
CA Final
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291