doubt

bad debts recovered is pre incorp only..i just misundestood the ques but want to clarify the amt recovered 7000 shoubld be directly related to the pre incorp period but why we are apportioning the cost betw pre and post

Thread Starter

Disa Selvam

CA Inter

★ 9K+

13-May-22 05:43

We are not apportioning 7000, it is shown at pre incorporation column only as income. Once refer the answer given in material

siva chaitanya

CA Final

★ 13K+

13-May-22 13:45

tq.. but iam asking the one in expenses.... we added 91000+7000 and we apportioned the expenses...

Thread Starter

Disa Selvam

CA Inter

★ 9K+

13-May-22 14:26

Yes we should apportion 98,000 rupees into pre and post as they are bad debts, they should be apportioned in sales ratio. We added 7000 because we should not deduct bad debts recovered(7000) directly from bad debts, when we are calculating pre and post profits

siva chaitanya

CA Final

★ 13K+

13-May-22 15:03

Bad debts are apportioned in sales ratio but bad debts which are recovered amounting to 7000/- should be presented in pre column as they are recovered before incorporation as per the rule.

siva chaitanya

CA Final

★ 13K+

13-May-22 15:05