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Query w.r.t AS 4

A cashier embezzled cash amounting to Rs 700000 in April, 2020 This has to be adjusted in the books for year ended 31st March, 2019, as per solution. My question is, what was the existing condition as on 31st March, 2019? Is it that embezzlement is an ordinary activity and is expected to happen. Is this the condition?


Kumarjit Dey

Kumarjit Dey

CA Inter

4K+

28-Nov-20 10:27

5

Answers (8)

Pls share the question.


Suraj Lakhotia

Suraj Lakhotia

Admin

28-Nov-20 10:39

Pls share the question.

Here sir

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Kumarjit Dey

Kumarjit Dey

CA Inter

4K+

28-Nov-20 10:56

Here sir

Cash was embezzled in March 12.


Suraj Lakhotia

Suraj Lakhotia

Admin

28-Nov-20 10:57

Cash was embezzled in March 12.

Oh, okay.


Kumarjit Dey

Kumarjit Dey

CA Inter

4K+

28-Nov-20 10:59

Oh, okay.

But Sir, management has failed to notice the embezzlement in prior period. Error, as per AS 5 in relation to PP items, may be a result of oversight. So why shouldnt this be treated as PPI in current year's P/L?


Kumarjit Dey

Kumarjit Dey

CA Inter

4K+

28-Nov-20 11:05

Identified before approval of financial statements. So it will be adjusted as per AS-4.

All clear. Thanks to you Sir :)


Kumarjit Dey

Kumarjit Dey

CA Inter

4K+

28-Nov-20 11:23

All clear. Thanks to you Sir :)

Welcome.


Suraj Lakhotia

Suraj Lakhotia

Admin

28-Nov-20 11:33