IndigoLearn

Forums

All Topics Accountancy Auditing Corporate & Other Laws Direct Taxation Indirect Taxation Financial Management Economics Costing Strategic Management Maths & Stats Exams Others AFM Financial Reporting CFA Level I

As-10

Accountancy

In illustration 7 I understood that if the transaction lacks commercial substance its measured at BOOK VALUE of assets given up. But what makes us deduct the cash recieved was by doubt.

Kaveesh Sethi

CA Inter

★ 2K+

13-Nov-20 10:46

325

Answers (3)

Two assets received in return for one asset given up. cash and new car.

CA Suraj Lakhotia

Admin

13-Nov-20 10:52

So is it right to say the cash and car together should amount to 13 L and as cash having a commercial value of 15k and the Balance will be for the other asset.

Thread Starter

Kaveesh Sethi

CA Inter

★ 2K+

15-Nov-20 20:52

Yes.

CA Suraj Lakhotia

Admin

16-Nov-20 10:07