Question
XYZ Ltd. purchases raw materials for ₹5,00,000 and
pays transportation charges of ₹50,000 and GST of ₹90,000. The GST is recoverable. What amount should be capitalised?Solution
Recoverable GST is not capitalised. Capitalised cost = Purchase + Transport = ₹5,50,000.
A company reported net profit before tax of Rs.36,100. It has raised debt capital of Rs.250,000 through 13% debentures. What is the interest coverage ra...
According to RBI’s KYC Directions, which account type can have relaxed identification requirements under specific circumstances?
In project finance, 'Completion Guarantee' is a undertaking provided by the project sponsors to the lenders to cover:
ICDS IV primarily deals with which aspect of financial reporting
Which of the following is not a source of long-term finance?
Anil and Baldev are partners sharing profit and losses in the ratio of 3: 2. Anil's capital is ₹ 60,000 and Baldev's capital is ₹ 30,000 before adju...
A company's interest coverage ratio (EBIT/Interest) is 3. If interest increases while EBIT unchanged, what happens to ratio and credit risk?
ABC Ltd. has fixed operating costs of ₹50 lakh and interest cost of ₹20 lakh. It earned EBIT of ₹80 lakh on sales of ₹200 lakh. Calculate the op...
A general insurer bundles motor policies with a roadside assistance service delivered by a third party. Premium is collected upfront for 12 months; assi...
Auditor notes that the company has accumulated losses exceeding net worth, but management claims recovery. What should auditor consider?
