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Cash flow statement (indirect method)

Accountancy

answered on 26-Apr-24 17:06

In question if net profit is given , we would consider it as net profit after tax. We will adjust non cash items and non operating expenses. What should we do when divided is paid ? Should we add back to net profit?

latest answer

No. Dividend is not deducted from net profit. So no adding back

Aswathi Aji

Aswathi Aji

CA Inter

1K+

1

195

Insurance Claim - Loss of Stock

Accountancy

answered on 30-Apr-24 16:51

Please help with calculation of opening stock of last year.

latest answer

Given 40,000

Samarendra Patasani

Samarendra Patasani

CMA Inter

0

1

297

As 7

Accountancy

answered on 30-Apr-24 16:55

Please provide the solution of this question

latest answer

Refer solution above.

Naina Bhojwani

Naina Bhojwani

CA Final

5K+

3

298

Internal reconstruction

Accountancy

answered on 06-May-24 09:45

In icai book illustration 3 sum , Bank od balance 35000 and other current liabilities amount Cannot Indicate why. Sir not explain about these part please explain

latest answer

Can you please elaborate your doubt?

Sathish Kumar

Sathish Kumar

CA Inter

3K+

2

267

Waste

Accountancy

answered on 25-Apr-24 16:39

Waste of time and waste of my money😒🫤😢

latest answer

What is the issue?

Muddangula Bharath kumar

Muddangula Bharath kumar

CA Final

250

1

173

Internal reconstruction

Accountancy

answered on 24-Apr-24 23:17

Please tell me, meaning and correct treatment of of point 11 ? I have little bit confusion 😔

latest answer

Reconstruction a/c Dr. 12,500 To Bank a/c 12,500

Nakul Dixit

Nakul Dixit

CA Final

4K+

1

261

change in method

Accountancy

answered on 03-May-24 11:13

while changing to different method y we divide by useful year and not multiply by rate of depreciation

latest answer

You can calculate revised rate of depreciation.

Bharavi Kothari

Bharavi Kothari

CA Foundation

20K+

2

169

When agreed value of consideration is intrinsic value (₹30 in this example) of Y ltd. But it shows it at Face value (₹10)

Accountancy

answered on 24-Apr-24 22:04

In this example, when Yltd. Decides to show the purchase consideration at par value i.e. ₹10 per share, so in books we mentioned purchase consideration as 50,00,000 shares x ₹10 per share, but what about the rest portion of purchase consideration that Yltd.paid to X ltd but doesn't show in books that is rest ₹20 per share (₹30-₹10, agreed value -fave value)?

latest answer

Liquidators A/c Dr 8000000 To psc A/c 3000000 To Esc A/c 5000000 If premium is allowed then Liquidator a/c Dr. 18000000 To psc 3000000 To Esc 5000000 To securities premium 10000000

Garima Bhargava

Garima Bhargava

CA Inter

185

4

327

Amalgamation of companies

Accountancy

answered on 30-Apr-24 17:18

In this question 7, (A) 4th point at a discount of 5% after takeover means?? Here they taken the full value of debenture for Net assets calculations of K Ltd

latest answer

issue price is 5% less.

Ramya Sundar

Ramya Sundar

CA Final

5K+

1

265

As 13

Accountancy

answered on 24-Apr-24 14:32

I purchased current investment on 1 /10/23.(F.y23-24) For 50lakh As on 31/3/24.fair value is 40 lakh. Since it is current investment, I carry this investment @ 40 lakh as on 31/3/24. 10 lakh is debited to p&l F.Y24-25 On 1/5 /24 , i decided to convert short term into long term investment. Fair value on 1/5/24 is 20 lak Now conversation should happen at lower of cost or fair value on date of conversation Cost =50 lakh( historic cost) Fairvalue = 20 lakh Hence conversion should happen at 20lakh Now my doubt is how much shld be charged to p&l in F.Y24-25 My anwer is 20 lakh charge to p&l. (difference between carrying value(40lakh) and 20lakh( conversion value) Is my understanding correct??

latest answer

Thank you sir

Krishnan K

Krishnan K

CA Inter

5K+

2

267