Login / Signup

Question

When a stressed loan is sold or transferred by a lender to an Asset Reconstruction Company (AR

C at a price below its Net Book Value (NB
V , what accounting treatment should the lender follow?

A Debit the shortfall to the profit and loss account

B Reverse the excess provision on transfer to the profit and loss account

C Credit the difference to the capital reserve account

D Create a separate provision for the shortfall

E None of the above

Practice Next

More Accounts Questions

Which cost concept includes both variable and fixed manufacturing costs?
Which inventory costing formula calculates value of closing inventory considering that inventory most recently purchased has not been sold?
If net present value (NPV) of a project is zero at discount rate 10%, IRR is:
What is the primary objective of the Fiscal Responsibility and Budget Management (FRBM) Act in India?
Revenue from operations is primarily generated from:
Which instance of SaaS allows users to explore functionality of web services such as Google Maps, Payroll Processing and Credit Card Processing Services et...
Company had opening deferred tax liability (DTL) ₹50,000. Due to tax rate change enacted after reporting date, DTL must be remeasured to ₹45,000. The remea...
An annuity that starts at a predetermined date in the future is called as:
What is the maximum aggregate balance permitted in bank accounts opened using Aadhaar OTP-based e-KYC in a non-face-to-face mode?
Read the following information to answer the below questions: Net Sales = 40,00,000 (20 % GP Element) out of which 40% is on credit. Opening Inventorie...

Relevant for Exams:

SIDBI Grade A (Assistant Manager)

Hey! Ask a query

ask-question