Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Particulars Interest (for April 01, 2017 to June 30, 2017) Amount Reasons 3,000 Interest amount of 3,000 pertains to the current financial year (April to
Particulars Interest (for April 01, 2017 to June 30, 2017) Amount Reasons 3,000 Interest amount of 3,000 pertains to the current financial year (April to June 2017), hence, would be recognised during this year. The interest amount for (January to March 2017) should be recognised in the last financial year (2016-2017) (Continued) c13 Particulars Amount Reasons Royalties 9,000 AS-9 prescribes the recognition of royalties on accrual (for April 01, 2017 to basis. Also, the royalty amount belongs to this financial June 30, 2017) year only; hence, 59,000 will be recognised during the financial year 2017-2018. Dividend declared for 12,000 Even though dividend has been merely declared and no 2016-2017 on April amount has been received, yet revenue will be recognised 25, 2017 on the date, when the right to receive the payment has been established. The date of revenue recognition is April 25, 2017 Example 9: Consider the following information related to sales of M/s Poppatlal and Sons. You being the financial manager of this firm need to guide your accounts team based on the remarks provided by the sales manager. Remarks by Remarks by Sales Sales Managers Finance Manager Goods sold worth $1,00,000 to We are quite sure about M/s Shinde on credit getting the payment based ? on long relationship with M's Shinde. Goods sold for 350,000 to a Not so sure about collection. new client Goods sold to M/s Tavre We were quite sure about worth 45,000 getting the payment at the time of sales, but after 3 months, the financial position of M/s Tavre is not so good. 2 2
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started