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Long term solvency ratio: Capital Hearing ratio

Financial Management

answered on 25-Aug-25 09:04

Capital gearing ratio seems to be similar with Debt equity ratio. The only difference is, under CG ratio, the pref. Sh. Cap is removed from denominator and added to numerator in DE ratio. Further my query extends regarding the meaning of capital gearing ratio. I didn't understood the purpose of this ratio as this seems similar with Debt equity ratio. As per my understanding, capital gearing sounds exactly like leverage. i.e. the more debt, more benifit for equity. .... [Video Time Stamp: 09:46]

latest answer

Yes

Vinod Kumar

Vinod Kumar

CA Inter

11K+

3

224

Effective Interest Rate

Financial Reporting

answered on 24-Aug-25 08:22

Sir, if in case of the question if they have given a transaction cost in % or in Rs. Should we calculate the effective Interest Rate.?? [Video Time Stamp: 00:00]

latest answer

Thank you Sir.

K Vamshi

K Vamshi

CA Final

14K+

2

202

Stock lending schemes

AFM

answered on 24-Aug-25 21:01

In this solution the lender of the security (Mr. A) is said to have earned the dividend during the time when he has lent the security to XYZ Ltd. My doubt is isn't the buyer of the shares to whom the short seller (XYZ Ltd) sold shares the current holder of those shares and wont he receive the dividends being the current holder. Would you pls explain why this is so, Sir? If it is Mr. A who should receive the dividend, as told in the question, wouldn't the current holder be at loss. It looks like the dividend Mr. A earns is not what is compensated by Mr. XYZ since in profit calculation of Mr. XYZ it is not considered. Sorry for troubling you sir.

latest answer

Yes

Rama Sesha Gopal

Rama Sesha Gopal

CA Final

11K+

5

197

TDS & TCS

Indirect Taxation

answered on 28-Aug-25 13:43

Sir, In this Example question TDS deducted only for payment due amount, not for Contract Value. But we will deduct TDS for Contract Value [Excluding GST > 250,000]. Sir Kindly clarify this. [Video Time Stamp: 09:01]

latest answer

TDS deduction will be done at the time of payment or credit whichever is earlier.

LAKSHMI G

LAKSHMI G

CA Inter

5K+

1

203

Mock Test Answers

Exams

answered on 25-Aug-25 14:38

Is it possible to provide with the answer key for the mock test papers for our references?

latest answer

You can submit the mock test paper attempted, we will correct the paper and also provide the solution.

Deep P

Deep P

CA Inter

23K+

1

250

Rate of Interest

AFM

answered on 23-Aug-25 22:42

Sir, how can we get to know that these rates are per annum basis. Some questions are mentioning 6 months LIBOR is X% and the suggested answers are considering it as per annum rate and to compute the interest, they are taking X/2 since it is for 6 months. Similarly, in this question it provides that the rate of interest in day 180 is 4%, in day 360 at 5.1%......... My understanding was this 4% is for next 6 months so no need to do /2 in the rate. How can we understand that this rate is for a year not for 180 days. [Video Time Stamp: 20:17]

latest answer

Ok sir, thank you

Abhijith K B

Abhijith K B

CA Final

5

2

200

Income tax for capital gains

Accountancy

answered on 25-Aug-25 14:28

Sir you said income tax is paid for profits earned so it comes under operating activities . my doubt is if I sell fixed assets it is a capital gain for this also income tax to be paid in this case can I show in investment activities as a outflow. Tell sir [Video Time Stamp: 14:14]

latest answer

Yes. However pls note that Income tax follows a block concept and generally business assets do not result in capital gains (in most cases) during continuation of the company.

Balaji raghu

Balaji raghu

CMA Inter

980

1

193

bad debts recovery

Accountancy

answered on 23-Aug-25 11:35

Sir if bad debts recover in future can it comes in cash flow statement. Example today we show bad debts in P&L it is a non cash item if I recover in future can i show in cashflow statement tell sir [Video Time Stamp: 00:05]

latest answer

You will show as inflow

Balaji raghu

Balaji raghu

CMA Inter

980

1

191

lecture 2 of bonds

AFM

answered on 23-Aug-25 12:30

how 8 lakhs amount come ? what amount of money did shyam give to ram [Video Time Stamp: 18:08]

latest answer

Bond

Abhay Goyal

Abhay Goyal

CA Foundation

180

2

174

Buyback premium

Accountancy

answered on 25-Aug-25 15:57

Sir, shouldn't we write off premium on buyback against Securities premium reserve? [Video Time Stamp: 16:49]

latest answer

No worries

Rahul Anand

Rahul Anand

CA Inter

6K+

3

254