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Accountancy

answered on 16-Feb-21 11:30

Can we draw a timeline for date of events on the exam paper?

latest answer

Yes

Kishore Anil

Kishore Anil

CFA L1

2K+

1

637

Ratio analysis 6th illustration

Financial Management

answered on 16-Feb-21 14:04

Hello sir , in illustration 6 of ratio analysis, in the accounting information they mentioned about the stock of finished goods but while calculating the works cost in cost sheet in module sir considered closing stock of finished goods as zero and in the p/L account also sir didn't mention about the closing cost of finished goods . My question is why we didn't consider the stock of finished goods while computing workscost and why we didn't mention about stock of finished goods in trading and p/L account??

latest answer

In works costs and Trading & P&L account we are directly taking gross profit & net profit respectively. The GP & NP numbers are arrived at after adjusting for closing stock. hence you are not required to use them in these statements. however the closing stick of RM & FG are required in BS where they are shown as part of current assets and also to compute cash balance

Rushitha Puvvada

Rushitha Puvvada

CA Final

5K+

1

692

Redemption of preference shares and buyback of equity shares

Accountancy

answered on 16-Feb-21 11:31

Instead of the redemption and buyback of preference and equity shares,like in the case of redemption of debentures,can the company buy those shares in the market ?

latest answer

Even if they buy from market, it would be treated as buyback.

Paidala Harish

Paidala Harish

CA Final

2K+

1

591

How are the operating and non oprating expenses are decided

Accountancy

answered on 17-Feb-21 10:59

How are the operating and non oprating expenses are decided for preparation of profit and loss account What is the of segregatting

latest answer

No

nisam M

nisam M

CA Final

23K+

3

700

Differemce between direct and indirect expenses

Accountancy

answered on 17-Feb-21 08:31

For the prepration of trading and profit loss account how we decide an expense is direct or indirect expenses , like transporation expenses

latest answer

Profit and loss account are indirect expenses

nisam M

nisam M

CA Final

23K+

4

1K+

Notes update

Indirect Taxation

answered on 16-Feb-21 10:41

When will be the updated notes of GST for may21 will be available on free notes section

latest answer

Working on it Will be updated in next 2-3 days

UTKARSH RAI

UTKARSH RAI

CA Inter

730

1

806

On Page 10.33, Insurance Claim for Loss of Profit

Accountancy

answered on 18-Feb-21 10:42

Illustration 8, why is gross profit divided by adjusted annual turnover and not previous financial year's turnover like we do in most cases?

latest answer

The total of adjusted standard turnover (given in the question)

Kishore Anil

Kishore Anil

CFA L1

2K+

3

620

Bank balnce

Accountancy

answered on 15-Feb-21 21:25

What does this mean ,bank balance ( cr) ?? Is it overdraft or balance?? State with reason

latest answer

No mention.

Reetikaa R

Reetikaa R

CA Final

7K+

11

842

Single entry system

Accountancy

answered on 17-Feb-21 12:44

While preparing statement of affairs ,y opening capital is deducted from adjusted closing capital ?? Y not opening capital minus adj closing capital ??

latest answer

Then how will you account for drawings and profit?

Reetikaa R

Reetikaa R

CA Final

7K+

5

648

In Loss of Profit Insurance Claim

Accountancy

answered on 16-Feb-21 10:29

Why do we take adjusted annual turnover when calculating Gross Profit under Allowable Increased Cost and not regular turnover? Also, while calculating Insurable Sum, why do we calculate it as GP% x Adj Annual T/O?

latest answer

Adj Annual turnover basically indicates - what would have been the annual turnover after adjusting for trends. Insurance for profits is for future profits and not past profits.

Kishore Anil

Kishore Anil

CFA L1

2K+

1

695