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Final accounts of sole proprietorship
Accountancy
answered on 21-Jul-25 15:34
It looks like there has been an error in pl which has been revised Sir has seen that Prepaid insurance is an asset which has been treated as revenue by putting it in the credit side of the pl account The prepaid insurance is to be deducted from profit not to be added
latest answer
Whether you deduct from expense side or add to income side, the final impact is same.
Gurukanta Singh
CA Inter
★ 20K+
4
284
Demurrage
Indirect Taxation
answered on 18-Jul-25 23:32
But while calculating FOB, we did not added demurrage why? [Video Time Stamp: 10:08]
latest answer
Demurrage cost is incurred after loading the goods into the vessel. That’s why it is not added at FOB stage
Hrishikesh Pradhan
Qualified CA
★ 18K+
2
325
Adjustments
Indirect Taxation
answered on 18-Jul-25 23:33
Sir, i wanted some clarity in relation to FOB. So, all the adjustment we learnt that is to add demurage, lighterage, etc, those shall be added before FOB or after FOB but before CIF and also will 20% for freight will be calculated on FOB value which includes such adjustment [Video Time Stamp: 06:29]
latest answer
Demurrage, lighterage are added after FOB. Cost incurred after goods are loaded into vessel in foreign country is included after FOB
Hrishikesh Pradhan
Qualified CA
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1
223
Fraud
Auditing
answered on 17-Jul-25 18:21
Maam, if as an auditor we see such a fraud, can't we do external confirmation..why should we withdraw from the engagement? [Video Time Stamp: 05:36]
latest answer
External confirmation is basically confirming existence of matters . In audit, it has some limitation that we need to get data available from the management, route through them etc. so it can’t be considered as reliable. external confirmations alone may not resolve the issue, particularly when: -The suspected fraud originates at a senior level (like CEO/CFO), -There’s collusion or override of controls, -The integrity of the management is in question, In such situation, withdrawal become mandatory.
SANSKRITI BADRI 2111339
CA Final
★ 4K+
1
195
Time Limit for Publication of Statement on Website
Auditing
answered on 17-Jul-25 18:26
Ma'am in Question 1(5), the question is that what is the date by which the unpaid dividend should have been transferred to the unpaid dividend account and by what time should the statement be published on the website. 1. For computing the date by which the amount should be deposited in the unpaid dividend account, we have taken the ideal time limits. Like, dividend should be paid within 30 days of declaration thereof (i.e., 30 days from 25th April = 25th May) and within the next 7 days the unpaid dividend should be transferred to the unpaid dividend account (i.e., 7 days from 25th May = 1st June). 2. But for computing the date by which the statement should have been published, we have taken the actual limits i.e., 90 days from the date of actual transfer to the unpaid dividend account (90 days from 15th June = 13th September). Should we not take the ideal time limits for computing this date i.e., 90 days from the date on which the amount should have been transferred to the unpaid dividend account (90 days from 1st June = by 30th August). If we are taking the actual limits then we should have also computed the date for deposit into the unpaid dividend account to be 7 days from the actual payment of dividend (i.e. 7 days from 10th June = 17th June).
latest answer
Within 90 days of transferring the amount, the company must prepare a statement containing the names, last known addresses, and amount unpaid and place it on the company’s website and also on any other website approved by the government. Here time line is 90 days from transferring not end of 7th day. In summary, -it’s 30 days -Then within 7 days from compeletion of 30 days. -So max by 37th day. N if transfer has happened on 32nd day only, then 90 days from 32nd day. Not 37th. That’s the proper provison of sec 124
Vignesh Panigrahi
CA Final
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1
213
Declaration of Dividend
Auditing
answered on 17-Jul-25 18:27
1. Ma'am, in the lecture it was explained that in case of inadequacy of profits, dividend may be declared out of reserves after satisfying all the four conditions in Rule 3. The third condition was that 'Profits withdrawn shall be first used to set-off Current Year Losses before declaring dividend'. 2.In the PDF Notes, under Miscellaneous Provisions, it has been mentioned that brought forward losses & depreciation from the prior years shall be provided for and capital profits shall be excluded to arrive at the amount of divisible profits. 3. Is the second point also applicable when determining the amount of dividend to be taken out of reserves, For example, suppose ₹1 lac has been withdrawn from the reserves for declaration of dividend. Should this ₹1 lac be first used to set off all the current year losses & depreciation and also the brought forward losses & depreciation before declaring dividends?
latest answer
Yes it wil apply both👍
Vignesh Panigrahi
CA Final
★ 1K+
1
285
preference share capital
Financial Management
answered on 16-Jul-25 07:03
Sir isn't possible to raise preference shares + debt alone to raise funds. without equity. [Video Time Stamp: 03:48]
latest answer
Some body has to be owner of a company Equity holder is that A company without equity is not possible
21SCO08 mahalakshmi
CA Inter
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1
275
Advantages of equity shares
Financial Management
answered on 16-Jul-25 06:47
Equity share capital is a security for debt. Sir, how they become security because when company performs not well then the market value per share decreases then how this can be used to repay the debt because know one will buy the shares
latest answer
thank you sir
21SCO08 mahalakshmi
CA Inter
★ 1K+
2
217
sm book by 1fin
Strategic Management
answered on 15-Jul-25 21:13
hello , do we have to study old syllabus questions too because in sm book with compiler by 1fin i see old syllabus questions which are not there in new syllabus icai module . thank you.
latest answer
If you are unsure about a question, you can ask me here
Vidyakrishna vidyakrishna
CA Inter
★ 1K+
2
263
Receivables
Financial Management
answered on 15-Jul-25 21:14
Why return on investment in receivables is considered as cost?
latest answer
because money stuck in receivables is delayed cash on which we lost interest income
Venkat L
CA Inter
★ 2K+
1
180