Accounting standards

Page no : 2

yasaswi gomes (My grammar is 💯 good I) (7290 Points)
Replied 14 January 2021

SUndry Redditor and debtors is a real account, debit what comes in and credit what goes out.

Sundry creditor ledger - debit side ‘to bank’

Sundry debtors ledger- credit side ‘by bank’

sundry Debtors ledger- debit side ‘to sales’

MPR sanjay Kumar (CA student) (216 Points)
Replied 14 January 2021

For eg: Mr Lal is my sundry creditor ,IAM obligated by him for RS 5000. If I paid this amount means which side it will show debit side or credit side in books of accounts tally

Then,if I have to pay means the amount which side it will show....plse clarify me I need clear explanation

yasaswi gomes (My grammar is 💯 good I) (7290 Points)
Replied 14 January 2021

tally right, ok I forgot the route, let me guess,

when you purchased something

Purchases a/c

To Lal a/c

when you paid back

creditor Lal a/c dr.

To Bank a/c

1 Like

yasaswi gomes (My grammar is 💯 good I) (7290 Points)
Replied 14 January 2021

Ty, it’s actually Purchases a/c debit and not goods.

yasaswi gomes (My grammar is 💯 good I) (7290 Points)
Replied 14 January 2021

Forgot to mention, substance over form according to me is the right to exercise right decision. Eg., is New Provision required or should we add it to the old provision making it big bath? The judgement is yours.

MPR sanjay Kumar (CA student) (216 Points)
Replied 14 January 2021

Receivables means what ?

Payables means what ?

yasaswi gomes (My grammar is 💯 good I) (7290 Points)
Replied 14 January 2021

Debtors and creditors- now I want 50,000 pm salary since I passed my interview

MPR sanjay Kumar (CA student) (216 Points)
Replied 14 January 2021

Payables means I have to pay my liability.

Receivables means I have to receive not yet

IAM I correct 😊

1 Like

MPR sanjay Kumar (CA student) (216 Points)
Replied 15 January 2021

What is mean by capital reserve account

yasaswi gomes (My grammar is 💯 good I) (7290 Points)
Replied 15 January 2021

Capital a/c

To Capital reserve a/c

its created out of capital

MPR sanjay Kumar (CA student) (216 Points)
Replied 15 January 2021

What is mean by scrap value ,how do find out in depreciation

yasaswi gomes (My grammar is 💯 good I) (7290 Points)
Replied 15 January 2021

That’s residual value, what is left after the useful life. It is estimated.

MPR sanjay Kumar (CA student) (216 Points)
Replied 15 January 2021

Give a case studies for this scrap value

yasaswi gomes (My grammar is 💯 good I) (7290 Points)
Replied 15 January 2021

I will once I finished off lunch.

yasaswi gomes (My grammar is 💯 good I) (7290 Points)
Replied 15 January 2021

Determination of residual value of an asset is normally a difficult matter. If such value is considered as insignificant, it is normally regarded as nil. On the contrary, if the residual value is likely to be significant, it is estimated at the time of acquisition/installation, or at the time of subsequent revaluation of the asset. One of the bases for determining the residual value would be the realisable value of similar assets which have reached the end of their useful lives and have operated under conditions similar to those in which the asset will be used.

the above is gap and you can understand the uncertainties involved in calculating the residual value.

While the schedule 2 of company acts has a detailed list of estimated useful life and from I found out today, residual value is added to the retained earnings. It’s not written off, interesting!! Maybe it’s carrying or NRV on disposal. I didn’t have time to investigate this.

From the date this Schedule comes into effect, the carrying amount of the asset as

on that date—

(a) shall be depreciated over the remaining useful life of the asset as per this

Schedule;

(b) after retaining the residual value, shall be recognised in the opening balance

of retained earnings where the remaining useful life of an asset is nil.

Ill get back with formulas, after completing my lunch