ICICI

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Exclusion of hirepurchase debtors & stock and debtors method

N.Naveena Maheswara Rao (Assistant manager for accounts)   (1091 Points)

24 August 2013  

Announcement: Exclusion of Hire Purchase Trading Account (Debtors) Method and Stock and Debtors Method from Chapter 11 of Intermediate (IPC) Course Paper 1: Accounting Study Material. - (23-08-2013)


It has been observed that Hire Purchase Trading Account (Debtors) method and Stock and Debtors method of ascertaining profit or loss on sale of goods of small value under hire purchase system based on the simplified approach followed in the Study Material are not fully compliant with AS 19 “Leases” since loading amount contains both profit as well as interest element.

However, students may note that both these methods would be fully compliant with AS 19, provided the usage of interest rate, IRR, etc. are followed to bifurcate the element of interest and profit. Such an approach to apply both these methods involves more complication and hence may not be relevant in practice for Intermediate (IPC) Students. Therefore, Board of Studies has decided to exclude the Hire Purchase Trading Account (Debtors) Method and Stock and Debtors Method in the Paper 1: Accounting Study Material at Intermediate (IPC) level.

Accordingly, students of Intermediate (IPC) Course Paper 1: Accounting are advised not to read the said methods given in Chapter 11 of the Study Material. The details of the relevant page nos. and questions in the Study Material and Practice Manual of July, 2013(Revised edition) respectively, are given hereunder:

Volume I

Study Material

Para 9 to 13 and Illustrations 13 to 19 in Page nos. 11.32 to 11.50

Volume II

Practice Manual

Questions 1, 2, 4, 5, 6, 7, 8 and 10 in Page nos. 11.1 to 11.20

 

 


 2 Replies

jogendra (articled assiatance) (138 Points)
Replied 24 August 2013

THANKS.............SIR .........

sidhant saha (prop) (1394 Points)
Replied 24 August 2013

It is a good news for ca inter students 


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  





Subscribe to the latest topics :
Search Forum:



Trending Tags