Read the following hypothetical Case Study and answer the given questions:
Astha Ltd, which closes its books on 31st March every year, purchased on 1st July 2018, machinery costing ₹30,000. It purchased further machinery on 1st January 2019 costing ₹20,000 and on 1st October 2019 costing ₹10,000. On 1st April 2021 one-third of the machinery installed on 1st July 2018 became obsolete and was sold for ₹3,000.
It being given that machinery was depreciated by Diminishing Balance Method at 10% per annum.
What will be the depreciation to be charged on the machinery purchased on 1st July 2018, by the end of 31st March 2020?
Read the following hypothetical Case Study and answer the given questions:
Astha Ltd, which closes its books on 31st March every year, purchased on 1st July 2018, machinery costing ₹30,000. It purchased further machinery on 1st January 2019 costing ₹20,000 and on 1st October 2019 costing ₹10,000. On 1st April 2021 one-third of the machinery installed on 1st July 2018 became obsolete and was sold for ₹3,000.
It being given that machinery was depreciated by Diminishing Balance Method at 10% per annum.
What is the loss/profit on the sales proceeds of the machinery sold on 1st April 2021?
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Read the following hypothetical Case Study and answer the given questions:
Astha Ltd, which closes its books on 31st March every year, purchased on 1st July 2018, machinery costing ₹30,000. It purchased further machinery on 1st January 2019 costing ₹20,000 and on 1st October 2019 costing ₹10,000. On 1st April 2021 one-third of the machinery installed on 1st July 2018 became obsolete and was sold for ₹3,000.
It being given that machinery was depreciated by Diminishing Balance Method at 10% per annum.
What is the total depreciation charged on the machinery purchased on 1st January 2019 by the end of 31st March 2021?
Read the following hypothetical Case Study and answer the given questions:
Astha Ltd, which closes its books on 31st March every year, purchased on 1st July 2018, machinery costing ₹30,000. It purchased further machinery on 1st January 2019 costing ₹20,000 and on 1st October 2019 costing ₹10,000. On 1st April 2021 one-third of the machinery installed on 1st July 2018 became obsolete and was sold for ₹3,000.
It being given that machinery was depreciated by Diminishing Balance Method at 10% per annum.
________ account is opened when the value of machinery are not decreased in the books of accounts.
Read the following hypothetical Case Study and answer the given questions:
The business which follows the convention of prudence keeps provisions and reserves so that they can keep the liquidity of the firm and help it in the time of crisis. But, what are exactly Reserves and Provisions. When we talk about provisions, they mean setting aside a part of the profits for meeting a known future liability, the amount of which is not accurately known at the time of finalization of financial statements. It is made for meeting known future liability. The amount of the liability cannot be determined accurately. It is charge against profit reducing the profit. Provisions serve a lot of purposes. It helps in ascertaining the true net profit of the entity. The true financial position can be determined adequately. It helps in providing funds for the liabilities that may occur in future. It helps in the proper allocation of expenses that are incurred over the time.
Reserves, on the other hand, means an appropriation of profits or other surplus to strengthen the liquid resources of the business enterprise and not for meeting any liability, contingency or any commitment of the business. They are retained or undistributed net profit. It is voluntarily done to strengthen the financial position of the firm. It can be used for investing in outside securities. Like provisions, reserves are also very important for the business enterprises. It helps in meeting any unforeseen expenses. It strengthens the financial position of the firm. It helps in equal distribution of profit. It helps in providing funds to meet liability
____________ means setting aside a part of the profits for meeting a known future liability.
Read the following hypothetical Case Study and answer the given questions:
The business which follows the convention of prudence keeps provisions and reserves so that they can keep the liquidity of the firm and help it in the time of crisis. But, what are exactly Reserves and Provisions. When we talk about provisions, they mean setting aside a part of the profits for meeting a known future liability, the amount of which is not accurately known at the time of finalization of financial statements. It is made for meeting known future liability. The amount of the liability cannot be determined accurately. It is charge against profit reducing the profit. Provisions serve a lot of purposes. It helps in ascertaining the true net profit of the entity. The true financial position can be determined adequately. It helps in providing funds for the liabilities that may occur in future. It helps in the proper allocation of expenses that are incurred over the time.
Reserves, on the other hand, means an appropriation of profits or other surplus to strengthen the liquid resources of the business enterprise and not for meeting any liability, contingency or any commitment of the business. They are retained or undistributed net profit. It is voluntarily done to strengthen the financial position of the firm. It can be used for investing in outside securities. Like provisions, reserves are also very important for the business enterprises. It helps in meeting any unforeseen expenses. It strengthens the financial position of the firm. It helps in equal distribution of profit. It helps in providing funds to meet liability
____________ means an appropriation of profits or other surplus to strengthen the liquid resources of the business enterprise.
Read the following hypothetical Case Study and answer the given questions:
The business which follows the convention of prudence keeps provisions and reserves so that they can keep the liquidity of the firm and help it in the time of crisis. But, what are exactly Reserves and Provisions. When we talk about provisions, they mean setting aside a part of the profits for meeting a known future liability, the amount of which is not accurately known at the time of finalization of financial statements. It is made for meeting known future liability. The amount of the liability cannot be determined accurately. It is charge against profit reducing the profit. Provisions serve a lot of purposes. It helps in ascertaining the true net profit of the entity. The true financial position can be determined adequately. It helps in providing funds for the liabilities that may occur in future. It helps in the proper allocation of expenses that are incurred over the time.
Reserves, on the other hand, means an appropriation of profits or other surplus to strengthen the liquid resources of the business enterprise and not for meeting any liability, contingency or any commitment of the business. They are retained or undistributed net profit. It is voluntarily done to strengthen the financial position of the firm. It can be used for investing in outside securities. Like provisions, reserves are also very important for the business enterprises. It helps in meeting any unforeseen expenses. It strengthens the financial position of the firm. It helps in equal distribution of profit. It helps in providing funds to meet liability
Which of the following is not an importance of Reserve?
Read the following hypothetical Case Study and answer the given questions:
The business which follows the convention of prudence keeps provisions and reserves so that they can keep the liquidity of the firm and help it in the time of crisis. But, what are exactly Reserves and Provisions. When we talk about provisions, they mean setting aside a part of the profits for meeting a known future liability, the amount of which is not accurately known at the time of finalization of financial statements. It is made for meeting known future liability. The amount of the liability cannot be determined accurately. It is charge against profit reducing the profit. Provisions serve a lot of purposes. It helps in ascertaining the true net profit of the entity. The true financial position can be determined adequately. It helps in providing funds for the liabilities that may occur in future. It helps in the proper allocation of expenses that are incurred over the time.
Reserves, on the other hand, means an appropriation of profits or other surplus to strengthen the liquid resources of the business enterprise and not for meeting any liability, contingency or any commitment of the business. They are retained or undistributed net profit. It is voluntarily done to strengthen the financial position of the firm. It can be used for investing in outside securities. Like provisions, reserves are also very important for the business enterprises. It helps in meeting any unforeseen expenses. It strengthens the financial position of the firm. It helps in equal distribution of profit. It helps in providing funds to meet liability
Which of the following is not a characteristic of Provisions?
Consider the following statements with respect to Provisions:
(i) The amounts that are created against profit to meet a known liability.
(ii) The amount that is paid.
(iii) The amount of which is uncertain.
Identify the correct statement/statements:
Consider the following statements with regard to the advantages of reverse:
(i) It is created for strengthening the financial position of the business.
(ii) It is created to strengthen the future growth.
(iii) It is an appropriation of profits.
Identify the correct statement/statements:
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1365 videos|1312 docs|1010 tests
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