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#17: Question for the day (Adv. Acc - Inter)
Accountancy
answered on 22-Aug-22 21:25
Write the answer in a sheet as you would write in exam and send photo by 8pm. #LetsPractice Monu Ltd. sold machinery having WDV of Rs. 400 lakhs to Sonu Ltd. for Rs. 500 lakhs and the same machinery was leased back by Sonu Ltd. to Monu Ltd. The lease back was in nature of operating lease. Explain the accounting treatment as per AS 19 in the following cases: (i) Sale price of Rs. 500 lakhs is equal to fair value. (ii) Fair value is Rs. 450 lakhs and sale price is Rs. 380 lakhs. (iii) Fair value is Rs. 400 lakhs and sale price is Rs. 500 lakhs. (iv) Fair value is Rs. 460 lakhs and sale price is Rs. 500 lakhs.
latest answer
Correct answer below. Please refer and evaluate. Following will be the treatment in the given cases: (i) When sales price of Rs. 500 lakhs is equal to fair value, Monu Ltd. should immediately recognise the profit of Rs. 100 lakhs (i.e. 500 â?? 400) in its books. (ii) When fair value of leased machinery is Rs. 450 lakhs & sales price is Rs. 380 lakhs, then loss of Rs. 20 lakhs (400 â?? 380) to be immediately recognised by Monu Ltd. in its books provided loss is not compensated by future lease payment. (iii) When fair value is Rs. 400 lakhs & sales price is Rs. 500 lakhs then, profit of Rs. 100 lakhs is to be deferred and amortised over the lease period. (iv) When fair value is Rs. 460 lakhs & sales price is Rs. 500 lakhs, profit of Rs. 60 lakhs (460-400) to be immediately recognised in its books and balance profit of Rs. 40 lakhs (500-460) is to be amortised/deferred over lease period.
Sahibdeep Singh
CA Inter
★ 14K+
2
1K+
Time value of money - sinking fund
Maths & Stats
answered on 23-Aug-22 10:32
How did we get rupees 18823? Is it 1/(1.1)â??? But it equals to 6.49506 and if sinking fund 3lac divided by 6.49506 it equals to 46188.94 Is present value formula used or a different one ? Please simply it for me. Thank you
latest answer
Try this and let us know if you still don't get it.
Chris Topher
CA Foundation
★ 5
6
797
Ca inter exam application in ssp portal
Exams
answered on 22-Aug-22 20:45
Did a cpt/foundation route student who is undergoing articleship need to get exam application form approved by auditor?
latest answer
Not needed
Ragul Periyasamy
CA Final
★ 3K+
5
703
Entry
Accountancy
answered on 22-Aug-22 10:24
What is contra entry can anyone explain to me with example and in easy language plzz.
latest answer
Yes
Prathmesh kharul
CA Foundation
★ 3K+
5
477
General
Exams
answered on 22-Aug-22 15:05
In CA foundation, if 3 questions are given out of which we have to write any 2.. and if we write all the 3 answers Does the examiner provide marks for the correct answers or the first two answers??
latest answer
Yes you have to follow the qp Whatever the qp says you have to follow
Monisha KM
CA Inter
★ 825
4
515
How to perform rough work in ca foundation maths exam paper
Others
answered on 23-Aug-22 09:27
Would anybody help me by explaining where and how we can perform rough work in QA exam ???
latest answer
Use the last page of question paper
Aditya Kumar
CA Foundation
★ 310
7
1K+
Calculation of excess capital
Accountancy
answered on 23-Aug-22 01:07
Retirement of partnership-Illustration 4 , I can't understand how to calculate capital proportionate
latest answer
Tq sis
Lathika
CA Inter
★ 6K+
6
722
Cost of capital
Financial Management
answered on 22-Aug-22 12:46
Someone pls explain this sum.
latest answer
Thank you sir now cleared.
Balaji R
CA Final
★ 20K+
6
464
Intermediate registration
Exams
answered on 23-Aug-22 10:40
Hi can anyone please say when is the last date for intermediate registration for appearing in May 2023
latest answer
1st September
Mahalaxmi B
CA Inter
★ 5K+
3
646
Loss due to vacancy & GAV
Direct Taxation
answered on 22-Aug-22 10:57
Hi sir/mam, I'm fully confused between what is taught in indigolearn lecture and notes given in ICAI, on arriving "GAV in case of vacancy loss". I'm getting different answers while solving using those 2 ways. Please explain what is the difference between the two? I have attached the pics of the 2 ways....
latest answer
Both the concepts are same with different presentations. 1. Say, You let out the property for 10 months. Rent received is Rs. 14,000. So, total rent received for 10 months is Rs. 1,40,000. The difference of Rs. 1,000 is not due to vacancy. But it is because you collected less than reasonable. So, this is not a vacancy loss. 2. For remaining 2 months, you did not received any rent. The reason behind that was the house property was vacant. So, vacancy loss is Rs. 30,000 To make it more clear, Total reasonably expected rent for the year is Rs. 1,80,000 and loss due to vacancy is Rs. 30,000. So GAV is Rs. 1,50,000
Girinath A
CA Inter
★ 765
3
556