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Illustration 1
Financial Reporting
answered on 21-Dec-24 07:54
I couldn't understand why Tax expense reduce by 150, sir ?
latest answer
We created a deferred tax on difference. Now once depreciation on higher amount is charged, the difference will reduce. So it is like reversal of deferred tax liability which was created.
Swathi S
CA Final
★ 975
1
181
Cash vs funds
Financial Management
answered on 14-Dec-24 10:42
What's the exact difference between funds flow and cash flow statements? Please explain practically
latest answer
Cash flow vs funds flow
anju B
CA Inter
★ 21K+
1
1K+
9th Question
Accountancy
answered on 16-Dec-24 15:01
Why is only one month's interest income taken to reduce it from the borrowing cost?
latest answer
A company borrowed Rs. 1,00,000 on 1st April 2017 for the purpose of acquisition of a qualifying asset. The loan attracts an interest rate of 12% per annum. The company incurred 1% of the loan amount as processing charges. The qualifying asset was ready by 30th September 2017 . The company initially had surplus fund to the extent of Rs. 50,000 which was deposited in a FD account bearing interest of 6% per annum for 1 month. The loan was repaid on 31st December 2017. What is the amount of borrowing cost to be capitalised?
V V
CA Inter
★ 3K+
4
744
Question 10
Accountancy
answered on 16-Dec-24 15:11
How is the amount of Rs 34000 arrived at, without interest rate given in the problem?
latest answer
When the funds have been borrowed generally then the amount of borrowing costs to be capitalized is to be calculated by applying a capitalization rate to the expenditure on that asset. The capitalization rate, here, means the weighted average of the borrowing costs applicable to the borrowings of the enterprise that are outstanding during the period, other than borrowings made specifically for obtaining a qualifying asset. However, the amount of borrowing costs capitalized during a period should not exceed the amount of borrowing costs incurred during that period. In case of borrowings which are not specific to the qualifying asset (also known as general borrowings). In the given case, the borrowing for truck is specific and will be excluded to arrive at the capitalisation rate. Capitalisation Rate = Total Interest / Total Borrowings x 100 = 43,000/5,00,000 = 8.6% Amount to be capitalised = 4,00,000 x 8.6% = 34,400
V V
CA Inter
★ 3K+
2
624
MCQ Test 1
Accountancy
answered on 26-Dec-24 10:50
Hello, for 10th question, how is the amount of Rs 34000 arrived at, without interest rate given in the problem?
latest answer
When the funds have been borrowed generally then the amount of borrowing costs to be capitalized is to be calculated by applying a capitalization rate to the expenditure on that asset. The capitalization rate, here, means the weighted average of the borrowing costs applicable to the borrowings of the enterprise that are outstanding during the period, other than borrowings made specifically for obtaining a qualifying asset. However, the amount of borrowing costs capitalized during a period should not exceed the amount of borrowing costs incurred during that period. In case of borrowings which are not specific to the qualifying asset (also known as general borrowings). In the given case, the borrowing for truck is specific and will be excluded to arrive at the capitalisation rate. Capitalisation Rate = Total Interest / Total Borrowings x 100 = 43,000/5,00,000 = 8.6% Amount to be capitalised = 4,00,000 x 8.6% = 34,400
V V
CA Inter
★ 3K+
1
555
Nominal Value Approach
Financial Reporting
answered on 14-Dec-24 14:19
Sir, 1. Timestamp @ 00:59 If we debit land and credit bank by Rs. 50,000 (i.e., 5 X Rs. 10,000) where will grant be entered so as to be shown in the books? [Since we pay there is no option but to credit bank.] 2. Had there been no payment, how would the fair value, and nominal approaches be accounted? Is it like: (a) Fair Value Approach Land A/c..... Dr. 5,00,000 To Grant 5,00,000 (b) Nominal Value Approach Land A/c..... Dr. 50,000 To Grant 50,000
latest answer
Thanks Sir.
Denz Philip
CA Final
★ 10K+
2
192
Inclusions in value
Indirect Taxation
answered on 19-Dec-24 18:29
Since all taxes except gst is included in value of supply, is that called double taxation. Since the main reason of introducing gst is to remove cascading effect, why double taxation occur here too ??
latest answer
There is no GST on GST. But other taxes are considered.
Akshay Shabu
CA Final
★ 2K+
1
199
Taxation
Direct Taxation
answered on 19-Dec-24 18:29
Exempted incomes chapter is available or not in Jan25.
latest answer
Right.
Short Video
CA Inter
★ 745
3
606
Need New Amended video for may 2025 exam
Direct Taxation
answered on 13-Dec-24 06:08
All explanations pertains to odd one. Please update New one. It creates confusion sir
latest answer
Please click on my courses and select the newly added course.
Sowmiya Prabu
CA Inter
★ 670
2
185
How Much amount is calculated as unexpected income in this particular Situation
Direct Taxation
answered on 26-Dec-24 18:27
The amount of 1Cr Explained income & 1Cr Unexpected income, total 2Crs is invested,for that investment 1Cr profit is gain,
latest answer
Gain out of unexplained is also treated as unexplained even if that route is not explained.
SRAVAN KUMAR P
CA Inter
★ 150
3
182