Ipcc accounting doubt?

loan outstanding is=rs.60

ecgc cover=40%

so value of risk adjusted assets=rs60*60%=rs36/-

I recommend you to thorough with rtp and compilation of institute

however ipcc compilations not available you go with suggested answers of ipcc and compilation of pcc accounts,

thanks

Ganeshbabu

ganesh babu i may be wrong but i think this is the solution   Amount outstanding (packing credit) 60 Less : Realisable value of securities 15                                                      60-15  =45 Less : ECGC cover (40%)                   = 18 Balance                                    (45-18) = 27 Required provision : Provision for unsecured portion (100%) 27.0 Provision for secured portion (100%)* 15.0 42.0 

 

solution given by V.A.P iz correct ;-D

As provn would be created only on unsecure one and rs 15 is already secured 

and from Rs45 - 40% is given cover