Factoring in sfm

CA Final 2419 views 6 replies
Hi, From where you ppl are preparing factoring?? Because now ICAI is asking 8-12 marks ques from this topic in every attempt.
Replies (6)

Hii shruti.

I have been doing factoring from the Study material / PM itself. I find the combination of these 2 is mostly succesful. If you have attended any classes you can always use your own classes notes and then pm. :)

Ya in Nov 2014 it was 12 Marks and even I could not attained that sum. I got 58 in SFM.. Otherwise I would Have clear Group One easily.

 

Haha...lucky you Rajesh. if i wouldve got 58 i would be CA CS by now. lol.

Jokes apart according to me SM/PM is the best combination plus if u have attended any classes then your personal notes would also be required.

There are several good guides nothing beats learning of the study material which has highly improved in quality over the last year

Dear Shruti,

Refer Practise manual /Study Material with RTP (of last 2 attempt) .

Its important to understand the concept of factoring rather than doing so many questions 

 

Has anybody solved Nov 14 Factoring sum? Can u all tell how is investment in receivables calculated? wat amt is deducted from 1100 sales figure? Kindly help....thank u in advance

Dear Kajal,

While calculating investament in receivable we have to consider ACP and cost of investment .

In this question 40% customer pays the debt in 10 days while the rest in 90 days which means ACP =(0.4*10+0.6*90) 58 Days 

Now the projected sale is 1000 crore and according we have to calculate investment in debtors but finance company invest in debtor via  mix debt and hence we have to calculate the cost of mix debt which comes to 13.60%

And finaly we will calculate cost of investement in receivable 

Hope it will help you out 


CCI Pro

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