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ILLUSTRATION 19: PART 2 & 3: RATIOS TO BALANCE SHEET CONCEPT: USE OF COSTSHEET
Financial Management
answered on 02-Sep-25 09:00
Sir, instead of saying i have a doubt, i should rather say, its is hard to accept the workings we are doing in this questions. because of the following reasons:- 1. The question drastically changed the perspective from financial accounting to cost accounting. 2. The workings revolving around the works cost is totaly based on an assumption that since o/s & c/s of WIP & FG were not provided hence, COGS = WORKS COST, where as the question has details of closing stock of raw material as well as finished goods, but not in quantitative form, but as qualitative details. Which i feel it is contradicting our assumption as COGS = WORKS COST with the absence of opening & closing stock details. 3. The P&L is filled with costing terms, because the question itself has details wrt costing terminology, should this be infered that if the question contains costing terms, we should present costing terminology in P&L? 4.Sir, even though the question have detail of CLOSING STOCK of raw material, we didnt reflected it in P&L in the credit side. * Is it because we have taken the net of opening & closing stock i.e raw material consumed, in the debit side. (OR) * is it because it resembles cost sheet [Video Time Stamp: 04:08]
latest answer
1. yes 2. w.r.t qualitative details - not sure how one can convert them into numbers 3. You can present using costing terminology only if the question talks in that manner 4. yes - OS and CS are not considered as RM consumed has been considered
Vinod Kumar
CA Inter
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110
Illustration 5
Financial Reporting
answered on 03-Sep-25 09:41
Sir, The general salary expense for Year 21-22 will be debited to expenses and payment will be made thereafter out of the same (as leave taken doesn't exceed eligible days). Is it right even if we pass single journal entry by giving net impact and increase the provision? Are we showing the Provision for accumulated leaves of Rs. 65 Lakhs as payment just because we assumed it to FIFO basis? [Video Time Stamp: 16:20]
latest answer
Net impact can also be given. It depends on the manner of utilisation of leaves. If we assume FIFO, then previous year's leaves are utilised first.
SANJITHA
CA Final
★ 5
1
104
T-Test
CFA
answered on 05-Sep-25 07:28
here 1.645 lies within 1.703 then why was the Null Hypothesis accepted? [Video Time Stamp: 13:51]
latest answer
1.645 is the test statistic you calculated (e.g., a z-value or t-value depending on the test). 1.703 is the critical value (the cutoff from the statistical table at a given significance level, If |Test Statistic| ≥ Critical Value, reject the Null Hypothesis (H₀). If |Test Statistic| < Critical Value, fail to reject (i.e., accept) the Null Hypothesis. Test Statistic = 1.645 Critical Value = 1.703 Since 1.645 < 1.703, the test statistic does not fall into the rejection region.
Neekir n.c.v
CFA L1
★ 0
1
128
Net assets caluculation - Pooling of interest method.
Financial Reporting
answered on 03-Sep-25 09:30
Sir, Shouldn't we use fair values of assets in calculating the purchase consideration(not for incorporating in the books) of the net assets in the illustration 21 and then determine the no of shares to be issued on the basis of face value of the share instead of fair value. in case question directly mentions no of shares transferee is issuing then we might be ignoring the fair values of assets. [Video Time Stamp: 03:57]
latest answer
If the question does not mention the number of shares to be issued then in that case for computation of PC, we will consider FV. But accounting / incorporation of assets and liabilities will be done at book value only.
Akhil Reddy
CA Final
★ 6K+
1
126
derivative market
AFM
answered on 01-Sep-25 18:05
sir IPO bhi derivative market ke andar le sakte hai kya ? [Video Time Stamp: 03:14]
latest answer
No IPO is primary market and is part of cash market
Abhay Goyal
CA Foundation
★ 180
1
116
Put option
AFM
answered on 02-Sep-25 08:28
can you give some easy examples for better understanding sir [Video Time Stamp: 11:08]
latest answer
if you have understood these basic examples what i have given in this intro video, it is broadly sufficient When you solve problems, you will get more understanding
Abhay Goyal
CA Foundation
★ 180
1
119
How to extend class
Auditing
answered on 01-Sep-25 14:42
Hii, Kindly note that I'm undergoing articleship & its about to complete, please let me know how to extend my class enrolled for audit.
latest answer
Our team tried reaching you but couldn't connect. Kindly reach us back on 9640111110.
Mala Ca
CA Final
★ 23K+
1
122
PRE TAX : EBIT
Financial Management
answered on 01-Sep-25 18:09
sir, doest we consider EBT as pre tax return?, does it mean that PRE tax return is taken even before deducting the interest expense? [Video Time Stamp: 10:48]
latest answer
When return is asked on capital or assets you take EBIT When return on equity is asked we take PBT or Pat
Vinod Kumar
CA Inter
★ 11K+
1
109
ILLUSTRATION 2: RATIO ANALYSIS
Financial Management
answered on 01-Sep-25 18:07
Query 1: Sir, in the p/l, why didnt we show the depreciation and interest element separately?, you have shown them all together under other expenses. is it ok to show them in this way in exams? Query 2: sir i tried to solve this question along with you, initially after reading the question, it was hard to understand the askings of question. But as the way you've explained them, it become easy to understand. My mind figured out the answers even before we arive at solution, but the problem is, i have to wait for your answer, because, i dont know how to present them formally. my mind did rough calculation with calculator, but lacked in presenting them, hope, more practice in this question will help me to improve presentation [Video Time Stamp: 41:07]
latest answer
If dep and int are available separately and can be computed independently then they need to be shown separately Presentation in exam - you will get it with practice and mocks . That is the only way
Vinod Kumar
CA Inter
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1
107
How correlation is not possible between cash flow and net profit under direct method
Accountancy
answered on 02-Sep-25 11:19
Sir you said correlation is not possible between cash flow and net profit under direct method. What we do in direct method we take cash items and summarize this is the cash flow . after knowing that to this extent we have cash profit . say for example my net profit is ₹100000 cash profit is ₹50000 in that case we know another ₹50000 is non cash profit . but you said correlation is not possible can you explain that how sir. [Video Time Stamp: 00:00]
latest answer
We would not know break up of non cash items and also profits/loss from other heads. since other heads consider gross inflows and outflows.
Balaji raghu
CMA Inter
★ 980
1
126