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Question 10
Accountancy
answered on 16-Dec-24 15:11
How is the amount of Rs 34000 arrived at, without interest rate given in the problem?
latest answer
When the funds have been borrowed generally then the amount of borrowing costs to be capitalized is to be calculated by applying a capitalization rate to the expenditure on that asset. The capitalization rate, here, means the weighted average of the borrowing costs applicable to the borrowings of the enterprise that are outstanding during the period, other than borrowings made specifically for obtaining a qualifying asset. However, the amount of borrowing costs capitalized during a period should not exceed the amount of borrowing costs incurred during that period. In case of borrowings which are not specific to the qualifying asset (also known as general borrowings). In the given case, the borrowing for truck is specific and will be excluded to arrive at the capitalisation rate. Capitalisation Rate = Total Interest / Total Borrowings x 100 = 43,000/5,00,000 = 8.6% Amount to be capitalised = 4,00,000 x 8.6% = 34,400
V V
CA Inter
★ 3K+
2
646
MCQ Test 1
Accountancy
answered on 26-Dec-24 10:50
Hello, for 10th question, how is the amount of Rs 34000 arrived at, without interest rate given in the problem?
latest answer
When the funds have been borrowed generally then the amount of borrowing costs to be capitalized is to be calculated by applying a capitalization rate to the expenditure on that asset. The capitalization rate, here, means the weighted average of the borrowing costs applicable to the borrowings of the enterprise that are outstanding during the period, other than borrowings made specifically for obtaining a qualifying asset. However, the amount of borrowing costs capitalized during a period should not exceed the amount of borrowing costs incurred during that period. In case of borrowings which are not specific to the qualifying asset (also known as general borrowings). In the given case, the borrowing for truck is specific and will be excluded to arrive at the capitalisation rate. Capitalisation Rate = Total Interest / Total Borrowings x 100 = 43,000/5,00,000 = 8.6% Amount to be capitalised = 4,00,000 x 8.6% = 34,400
V V
CA Inter
★ 3K+
1
578
Nominal Value Approach
Financial Reporting
answered on 14-Dec-24 14:19
Sir, 1. Timestamp @ 00:59 If we debit land and credit bank by Rs. 50,000 (i.e., 5 X Rs. 10,000) where will grant be entered so as to be shown in the books? [Since we pay there is no option but to credit bank.] 2. Had there been no payment, how would the fair value, and nominal approaches be accounted? Is it like: (a) Fair Value Approach Land A/c..... Dr. 5,00,000 To Grant 5,00,000 (b) Nominal Value Approach Land A/c..... Dr. 50,000 To Grant 50,000
latest answer
Thanks Sir.
Denz Philip
CA Final
★ 10K+
2
200
Inclusions in value
Indirect Taxation
answered on 19-Dec-24 18:29
Since all taxes except gst is included in value of supply, is that called double taxation. Since the main reason of introducing gst is to remove cascading effect, why double taxation occur here too ??
latest answer
There is no GST on GST. But other taxes are considered.
Akshay Shabu
CA Final
★ 2K+
1
209
Taxation
Direct Taxation
answered on 19-Dec-24 18:29
Exempted incomes chapter is available or not in Jan25.
latest answer
Right.
Short Video
CA Inter
★ 745
3
613
Need New Amended video for may 2025 exam
Direct Taxation
answered on 13-Dec-24 06:08
All explanations pertains to odd one. Please update New one. It creates confusion sir
latest answer
Please click on my courses and select the newly added course.
Sowmiya Prabu
CA Inter
★ 670
2
194
How Much amount is calculated as unexpected income in this particular Situation
Direct Taxation
answered on 26-Dec-24 18:27
The amount of 1Cr Explained income & 1Cr Unexpected income, total 2Crs is invested,for that investment 1Cr profit is gain,
latest answer
Gain out of unexplained is also treated as unexplained even if that route is not explained.
SRAVAN KUMAR P
CA Inter
★ 150
3
194
Current assets
Accountancy
answered on 21-Dec-24 08:09
In current assets Sir was reduced 100 in 340 why not they reduced in 300 340 includes current liability, so we have to reduce it from 300 Is that correct, then balance sheet will not tally
latest answer
We will reduce from current assets. Liabilities will be shown separately in balance sheet.
Shivashankar Jawai
CA Inter
★ 2K+
1
634
Section number and rule number
Indirect Taxation
answered on 19-Dec-24 18:32
Is it mandatory to write the section number and the rules in exam ??. Will they reduce marks on account of this?
latest answer
For CA final it is always preferred to write. In my opinion it is mandatory.
Akshay Shabu
CA Final
★ 2K+
2
744
regarding cash outflow
Financial Management
answered on 12-Dec-24 13:07
sir while calculating cashflows for machine abc in rental option you said that penalty is cash outflow then while computing total pvco why did you add it instead of subtracting sir???
latest answer
Rent is an outflow and penalty is also an outflow all cashflows are outflows only hence all cash flows are added
PreneshRaj
CA Inter
★ 0
1
626