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Operating Cycle

Financial Reporting

answered on 31-Dec-23 11:48

Assuming that a company has borrowing repayable after 5 years it greater than operating cycle so it is a non current liability. When this borrowing reaches time period less than operating cycle from the reporting date then I have to classify this a current liability. Am I correct in my understanding. Similarly when a company has fixed deposit for 5 years initially I show it as non current asset. When it reaches time period less than operating cycle I have to show it as current asset. I have slight confusion here should I show it as part of cash and cash equivalent. If yes when I have to show it as cash and cash equivalent

latest answer

Yeah. You need to check the maturity from balance sheet datw

swaminathan sundaram

swaminathan sundaram

CA Final

110

1

318

Paper 6 Ca Final

Others

answered on 31-Dec-23 17:35

Sir How many Subjects it will comprises ? All it is case law bases MCQ know and is it kind of open book sir ?

latest answer

It will comprise of all subjects ( including self paced one) and it will be open book exam of 4 hours.

M Naresh

M Naresh

CA Final

3K+

1

355

Composition scheme

Indirect Taxation

answered on 02-Jan-24 14:27

Can a person provide ONLY supply of other services (not restra service / goods / mixed supply) under composition scheme ?

latest answer

Tax rate would be 6 percent

Sushmita Chowdhury

Sushmita Chowdhury

CA Inter

2K+

6

329

9(4) RCM

Indirect Taxation

answered on 02-Jan-24 14:28

1) capital goods are exempt from GST ? Isn’t this double taxation if CG and GST both implied on it 2) MrA is a land owner, gave land to promoter…..promoter pay consideration = RCM But then promoter incur construction expense (inward supply) to resell the flat then why can’t he claim ITC on such inward supply ?

latest answer

GST would apply only if consideration for sale of flat is received prior to OC. And moreover it is to be noted that Income Tax and GST implications are different.

Sushmita Chowdhury

Sushmita Chowdhury

CA Inter

2K+

3

362

Composition scheme ECO

Indirect Taxation

answered on 02-Jan-24 14:30

3rd pt If it’s 9(5) service…person supplying is unregistered, still ECO pays tax on such supply Does that mean a person providing 9(5) services can’t opt for composition scheme ?

latest answer

If services is covered under Section 9(5) then ECO would be liable to pay GST. In such case there is no question of composition scheme. And also in case where person is supplying goods through ECO registration is mandatory

Sushmita Chowdhury

Sushmita Chowdhury

CA Inter

2K+

3

413

Charge 9(5) eco

Indirect Taxation

answered on 02-Jan-24 14:31

Please explain the meaning of the highlight I knw it’s other than 9(5) but When will ECO be liable to claim ITC ..example would be helpful

latest answer

Amazon can take ITC on warehousing rent and other expenses if Amazon is liable to pay GST..

Sushmita Chowdhury

Sushmita Chowdhury

CA Inter

2K+

1

366

9(5) ECO, charge

Indirect Taxation

answered on 02-Jan-24 14:32

Wow Momo sold food via Zomato to MrA Food price = ₹100 Commission = ₹10 Zomato will b liable to pay GST on ₹110 ? 9(5) provision apply on commission and food price both ? (Sorry if the eg is vague)

latest answer

Value of supply includes commission. In case of supply of food by restaurant through ECO then ECO is liable to pay GST

Sushmita Chowdhury

Sushmita Chowdhury

CA Inter

2K+

3

462

Red Ink Interest on Bill of Exchange

Accountancy

answered on 02-Jan-24 15:58

Red ink interest is used if due date is falling after statement date. When red ink interest is calculated on bill receivable, whose due date is after statement date, we are debiting the debtor's account. If he pays on statement date, he should get a rebate for early payment, but we actually debited his account. Therefore he is paying extra How does this make sense? Could someone clear this doubt?

latest answer

He will pay on due date only.

Vishnu Muraleedharan

Vishnu Muraleedharan

CA Final

32K+

1

587

Query - Financial Instruments

Financial Reporting

answered on 30-Dec-23 16:33

Is Net Settlement means recognise only gain (100*10) not entire trasaction (100*110). Video Details Course: Financial Instruments - FR Module: Financial Instruments - Scope and Definitions Section: Scope - Exclusions

latest answer

IN net settlement, the parties pay or receive the net amount. In gross settlement, physical settlement of underlying happens and amount is paid for settlement. Gain will be same in both cases. You will learn more of this in AFM

Sai Krishna

Sai Krishna

CA Final

250

1

293

Unable to find Loss on Sale

Accountancy

answered on 31-Dec-23 20:36

How do they arrive upon Loss on Sale of Furniture here? Are they assuming that the Fixed Asset Account is maintained on cost basis? It has not been mentioned anywhere if such an assumption is taken

latest answer

NPO

Vishnu Muraleedharan

Vishnu Muraleedharan

CA Final

32K+

3

448