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As 16
Accountancy
In Lecture 10 of AS 16 the solution shown is diff from icai sugg ans Which one to follow?
Answers (10)
Follow icai method ,it is easier one . Weighted accumulated expense is nothing but average carrying amount during a year which means it is as good as incurring the entire expenditure on first day of the finance year and intrest rate can be directly applied to that amount for full year.
Sahibdeep Singh
You can assume specific loan has been utilized first, instead of assuming that it has been utilized proportionately throughout the year as was done in 7th video Q2.
Sir if we assume this and do accordingly final answer will be different so would there be any marks deduction?
Thread Starter
Priyanka UdeshiSir if we assume this and do accordingly final answer will be different so would there be any marks deduction?
This is what ICAI assumed. So, it would tally.
Sahibdeep Singh
This is what ICAI assumed. So, it would tally.
Sir without assumption answer can be derived by computing weight accumulated expense
Sahibdeep Singh
This is what ICAI assumed. So, it would tally.
I mean if we assume as taught in lecture by sir would there be any deductions in marks?
Thread Starter
Priyanka UdeshiI mean if we assume as taught in lecture by sir would there be any deductions in marks?
Practically, it was important to know both treatments exist. Solely, from exam perspective, will suggest that you solve the way ICAI solved.
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