Hello,
please answer this practical question. this is only for revision purpose
and to know the style of the answering. please answer in your own style as in exames.
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What will be the treatment of the following in the final statement of accounts for the year
ended 31st March, 2006 of a limited company?
i. On 15th April, 2006 due to destruction of the factory by fire, Ravi one of the company’s
debtors, declared himself insolvent. He owed Rs. 2,00,000 to the company.
ii. The company has taken a large-sized civil construction contract for a public sector
undertaking, valued at Rs. 2 crores. In the course of execution of the work on 29th
May, 2005, the company found while raising the foundation work that it had met a
rocky surface and the cost of contract would go up by an extra Rs. 50 lakhs which
would not be recoverable from the contractee. (CA Final, Nov. 1995)
thanking you
CAclubindia
