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Any queries in accounts post here

goutham (Principal at candaforca) (60 Points)

01 August 2015

Any Queries In Accounts Post Here we will solve it

or other members in club will solve

if you are unable to ask take a photo and put here :-)

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20 Replies

Chintu... (Student) (82 Points)
Replied 01 August 2015

It is possible complete both groups in 3months

please answer my question

Rishi (NONE) (163 Points)
Replied 01 August 2015

Why is provision for debtors is a liability ? thanx in advance

CA Saba Naaz (Chartered Accountant) (8487 Points)
Replied 01 August 2015

Are there any amendments in CA final financial reporting for nov.15 exams ?

goutham (Principal at candaforca) (60 Points)
Replied 01 August 2015

A provision is a loss or expense that will definitely occur in the future, but we don't know exactly how much or when the loss/expense will occur.

Usually a business decides (based on past records) that they expect a certain percentage of their debtors (receivables) not to pay them next year.

Let's say it's 5%. If their debtors come to 100,000, then they expect 5,000 to go "bad," and the real (net) debtors in their records will be 95,000 (100,000 - 5,000).

The provision for doubtful debts or bad debts is different to doubtful debts or bad debts. Doubtful debts or bad debts is an expense and has already occurred. The provision is a future loss. A future loss that must be recorded as soon as it becomes likely to occur. This future loss is like owing someone. Sort of. So it is a liability. But a special type of liability.

In other words, doubtful debts or bad debts have already occurred - the debt is bad right now. For example, Joe Shmoe (debtor) owed you 500 and he just told you he is filing for bankruptcy and can't pay anything. So you record the loss (expense account) called doubtful debts or bad debts of 500.

The provision, on the other hand, is for debts that will definitely occur - but in the future. The debts are not bad yet, but we are sure they will be bad. It is an estimate of bad debts in the future.

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goutham (Principal at candaforca) (60 Points)
Replied 01 August 2015

MR.SABA

Modification in the Syllabus of Final Paper 1: Financial Reporting and applicability of the same for the forthcoming CA Examinations – (30-05-2015)

The topic of “Overview of International Accounting Standards (IAS) / International Financial Reporting Standards (IFRS), Interpretations by International Financial Reporting Interpretation Committee (IFRIC), Significant differences vis-a-vis Indian Accounting Standards; Understanding of US GAAPs, Applications of IFRS and US” would be excluded from the syllabus of Final Paper 1 : Financial Reporting and the same would not be applicable from November, 2015 Examination.

for more news visit our website https://caknowledge.in/ca-final-accounts-latest-notes-amendments/

goutham (Principal at candaforca) (60 Points)
Replied 01 August 2015

MR.CHARAN

Yes it is possible to read both groups in 3 months if you are able to do hard work

daily 14hours required and lack of sleep will effects your health

So my advice is prepare group1 well and qualify it and while doing articleship write group 2

All the best for your future

MAHESHWAR (CA Final (Article assistance)) (147 Points)
Replied 02 August 2015

Sir, i have cleared ipcc 2nd group in may 2015 exam . My article ship has been also completed. Can i sit in nov 2015 exam plz sir help me

Vinod Vyas (Analyst) (258 Points)
Replied 02 August 2015

Proposed dividend is an adjusting event or non adjusting. In PM its written that now its adjusting event.

goutham (Principal at candaforca) (60 Points)
Replied 02 August 2015

As per Revised Schedule VI, proposed dividend is a non-adjusting event, i.e it has to be disclosed merely in the notes to accounts. But as per AS-4, it happens to be an adjusting event.
As per Revised Schedule VI, proposed dividend has no specific need to be shown under the head provisions, instead a disclosure is required separately as a note. However, as per AS-4, proposed dividend needs adjustment, if proposed or declared after B/s date but before the approval of FS. As it was mentioned in the general instructions of RS VI, requirements of AS will prevail over RS VI. Hence, proposed dividends will have to be provided as per AS-4. You may view it in one angle as proposed dividend is not representing the present obligation in b/s. Hope this helps.

Martin (accountant) (25 Points)
Replied 02 August 2015

I have a question. Can we pay cash payment of rs 13500 for asset with out bill or signature. We got the asset in subsidiary it worth is 30,000/- if we need bill we have to pay 30,000/-

kushal (student) (29 Points)
Replied 03 August 2015

Why on purchasing any goods we debit purchase account instead of purchase a/c

kushal (student) (29 Points)
Replied 03 August 2015

Sry my ques was why on purcahsing goods we debit purchase a/c but not stocka/c

sivaram (Asst Mgr-Taxation) (6918 Points)
Replied 03 August 2015

when you say that profits are earned evenly throughout the year

For eg when net profit for 3 years is given as

Year 1-30000

year 2-45000

Year 3-60000

should uniformity means same profit year after year with minor difference from base say from 30000,32000 then 35000? please clarify

lucky (article) (65 Points)
Replied 03 August 2015

As 12 query. . .A public sector company does work of irrigation. The accumulated loss of the company up to 31-3-2010 was Rs. 120 crores. The company had taken long-term credit from financial institutions of Rs. 80 crores by Mar ch 2010 for meeting the capital expenditure for irrigation construc- j tion. The long-term loan was taken with concurrence of the Central Govt. The | Central Govt, will provide subsidy for repayment of principal and interest amount \ of the loan. The company received Rs. 50 crores from the Central Govt The j considered the subsidy as capital subsidy and represented the amount under the head Capital Reserve in balance sheet Out of this Rs 40 crores was utilised for repayment of principal amount of loan. The company adjusted Rs. 40 crores with accumulated loss. Interest paid every year on loan during construction period was capitalised by the company. Central Govt, has also provided subsidy for capital interest every year. The company received Rs. 450 lakhs for this purpose. On the receipt of amount, the company credited capital reserve account. After the payment of interest, Rs. 450 lakhs was adjusted with accumulated loss. Comment whether above accounting treatment is correct. If not, explain the correct accounting treatment with reasons.