Signup as a Tutor

As a tutor you can connect with more than a million students and grow your network.

ICWA Coaching

ICWA Coaching

Trending Questions and Lessons

Follow 8,488 Followers

Ask a Question

Feed

All

All

Lessons

Discussion

Lesson Posted on 22/12/2017 Exam Coaching/ICWA Coaching

CMA Foundation Test Accounts

Vidyadhan Academy Pvt. Ltd.

Our faculty is well adapted with the latest syllabus taught at school as well as university well. They...

I. Multiple Choice Questions: 1. Which of these is/are recurring (indirect expenses)? (a) Transit insurance and freight (b) Octroi (c) Advertisement (d) Godown rent and insurance 2.X sends out goods to Y, costing Rs.1,50,000. Goods are to be sold at +33 1/3% of sale. The consignor asked consignee... read more

I. Multiple Choice Questions:

 

1. Which of these is/are recurring (indirect expenses)?

(a) Transit insurance and freight

(b) Octroi

(c) Advertisement

(d) Godown rent and insurance

 

2.X sends out goods to Y, costing Rs.1,50,000. Goods are to be sold at +33 1/3% of sale. The consignor asked consignee to pay an advance for an amount equivalent to 60% of sales value. The amount of advance will be

(a) 1,20,000

(b) 1,35,000

(c) 1,50,000

(d) None

 

3.Goods of the invoice value of Rs.2,40,000 sent outto consignee at 20% profit on cost the loading amount will be

(a) 40,000

(b) 48,000

(c) 50,000

(d) None

 

4.X of Mumbai sends out certain goods at cost +25%. Invoice value of the goods is Rs 2,00,000. 4/5thof the goods were sold by consignee at Rs 1,76,000. Commission 2% upto invoice value and 10% of any surplus above invoice. The amount of commission will be.

(a) 4800

(b) 5200

(c) 3200

(d) 1600

 

II. Fill in the blanks:

 

1. The person who sends the goods for sale on fixed commission basis is ______.

2.When the consignor sends goods to consignee he prepares a ________.

3.Delcredere commission is allowed to cover the risk of _________.

4.Where goods are sent on consignment, credit is given to _______ in the books of consignor.

5.Stock reserve is created to adjust ___________.

6.Extra commission given to the consignee, for making him responsible for bad debts this extra commission is known as __________.

 

III. True or false:

 

1.Goods sent on consignment account is of the nature  of real account

2.Goods valued at invoice price refers to valued at lower price than its original cost

3.Balance in consignment account shows profit and loss on consignment

4.Profit and loss on consignment is retained / borne by consignor

5.The details contained in account sales are unsold stock left with the consignee

 

IV. Practical Questions:

 

Q.1 From the following particulars ascertains the value of unsold stock on Consignment.

Goods sent (1,000 kgs.) Rs. 20,000.

Consignor’s expenses Rs. 4,000.

Consignees non-recurring expenses Rs. 3,000.

Sold (800 kgs.) Rs. 40,000.

Loss due to natural wastage (100 kgs).

  

Q.2Mr. X, the consignor, consigned goods to Mr. Y 100 Radio sets valued Rs. 50,000. This was made by adding 25% on cost. Mr. X paid Rs. 5,000 for freight and insurance.

Mr. Y received all goods in good condition. He incurred Rs. 4,000 for freight and miscellaneous expenses and Rs. 3,000 for godown rent. He sold 60 sets for Rs. 50,000. Show the necessary ledger account in the books of Mr. X assuming that Mr. Y was entitled to an ordinary Commission of 10% on sales and 5% Del Credere Commission on sales. He also reported that Rs. 1,000 were provide bad.

read less
Comments
Dislike Bookmark

Answered on 06/11/2017 Exam Coaching/ICWA Coaching

KARTHIKEYAN

Tutor

My answer will be it is better to concentrate only on studies. Because if you completed the course you have lot of opportunities waiting outside.
Answers 9 Comments
Dislike Bookmark

Lesson Posted on 29/07/2017 Exam Coaching/ICWA Coaching

Managerial Economics: Theory Of Production

Kousiki C.

Teaching is my hobby and not my profession. I have around 16 years teaching experience. I started my...

In Economics, production theory explains the principles in which the business has to take decisions on how much of each commodity it sells and how much it produces and also how much of raw material ie., fixed capital and labor it employs and how much it will use. It defines the relationships between... read more

In Economics, production theory explains the principles in which the business has to take decisions on how much of each commodity it sells and how much it produces and also how much of raw material ie., fixed capital and labor it employs and how much it will use. It defines the relationships between the prices of the commodities and productive factors on one hand and the quantities of these commodities and productive factors that are produced on the other hand.

Concept:

Production is a process of combining various inputs to produce an output for consumption. It is the act of creating output in the form of a commodity or a service which contributes to the utility of individuals.

In other words, it is a process in which the inputs are converted into outputs.

Function:

The Production function signifies a technical relationship between the physical inputs and physical outputs of the firm, for a given state of the technology.

Q = f (a, b, c, . . . . . . z)

Where a,b,c ....z are various inputs such as land, labor ,capital etc. Q is the level of the output for a firm.

If labor (L) and capital (K) are only the input factors, the production function reduces to

Q = f(L, K)

Production Function describes the technological relationship between inputs and outputs. It is a tool that analysis the qualitative input – output relationship and also represents the technology of a firm or the economy as a whole.

Production Analysis:

Production analysis basically is concerned with the analysis in which the resources such as land, labor, and capital are employed to produce a firm’s final product. To produce these goods the basic inputs are classified into two divisions:

Variable Inputs:

Inputs those change or are variable in the short run or long run are variable inputs.

Fixed Inputs:

Inputs that remain constant in the short term are fixed inputs.

Cost Function:

Cost function is defined as the relationship between the cost of the product and the output. Following is the formula for the same:

C = F [Q]

Cost function is divided into namely two types:

Short Run Cost:

Short run cost is an analysis in which few factors are constant which won’t change during the period of analysis. The output can be changed ie., increased or decreased in the short run by changing the variable factors.

Following are the basic three types of short run cost:

Short Run Cost Types

Long Run Cost:

Long-run cost is variable and a firm adjusts all its inputs to make sure that its cost of production is as low as possible.

Long run cost = Long run variable cost

In the long run, firms don’t have the liberty to reach equilibrium between supply and demand by altering the levels of production. They can only expand or reduce the production capacity as per the profits. In the long run, a firm can choose any amount of fixed costs it wants to make short run decisions.

Law of Variable Proportions:

The law of variable proportions has following three different phases:

  • Returns to a Factor
  • Returns to a Scale
  • Isoquants

In this section, we will learn more on each of them.

Returns to a Factor:

Increasing Returns to a Factor:

Increasing returns to a factor refers to the situation in which total output tends to increase at an increasing rate when more of variable factor is mixed with the fixed factor of production. In such a case, marginal product of the variable factor must be increasing. Inversely, marginal price of production must be diminishing.

Constant Returns to a Factor:

Constant returns to a factor refers to the stage when increasing the application of the variable factor does not result in increasing the marginal product of the factor – rather, marginal product of the factor tends to stabilize. Accordingly, total output increases only at a constant rate.

Diminishing Returns to a Factor:

Diminishing returns to a factor refers to a situation in which the total output tends to increase at a diminishing rate when more of the variable factor is combined with the fixed factor of production. In such a situation, marginal product of the variable must be diminishing. Inversely the marginal cost of production must be increasing.

Returns to a Scale:

If all inputs are changed simultaneously or proportionately, then the concept of returns to scale has to be used to understand the behavior of output. The behavior of output is studied when all the factors of production are changed in the same direction and proportion. Returns to scale are classified as follows −

  • Increasing returns to scale : If output increases more than proportionate to the increase in all inputs.

  • Constant returns to scale : If all inputs are increased by some proportion, output will also increase by the same proportion.

  • Decreasing returns to scale: If increase in output is less than proportionate to the increase in all inputs.

For example: If all factors of production are doubled and output increases by more than two times, then the situation is of increasing returns to scale. On the other hand, if output does not double even after a 100 per cent increase in input factors, we have diminishing returns to scale.

The general production function is Q = F (L, K)

Isoquants:

Isoquants are a geometric representation of the production function. The same level of output can be produced by various combinations of factor inputs. The locus of all possible combinations is called the ‘Isoquant’.

Characteristics of Isoquant:

  • An isoquant slopes downward to the right.
  • An isoquant is convex to origin.
  • An isoquant is smooth and continuous.
  • Two isoquants do not intersect.

Types of Isoquants:

The production isoquant may assume various shapes depending on the degree of substitutability of factors.

Linear Isoquant:

This type assumes perfect substitutability of factors of production. A given commodity may be produced by using only capital or only labor or by an infinite combination of K and L.

Input-Output Isoquant:

This assumes strict complementarily, that is zero substitutability of the factors of production. There is only one method of production for any one commodity. The isoquant takes the shape of a right angle. This type of isoquant is called “Leontief Isoquant”.

Kinked Isoquant:

This assumes limited substitutability of K and L. Generally, there are few processes for producing any one commodity. Substitutability of factors is possible only at the kinks. It is also called “activity analysis-isoquant” or “linear-programming isoquant” because it is basically used in linear programming.

Least Cost Combination of Inputs:

A given level of output can be produced using many different combinations of two variable inputs. In choosing between the two resources, the saving in the resource replaced must be greater than the cost of resource added. The principle of least cost combination states that if two input factors are considered for a given output then the least cost combination will have inverse price ratio which is equal to their marginal rate of substitution.

Marginal Rate of Substitution:

MRS is defined as the units of one input factor that can be substituted for a single unit of the other input factor. So MRS of x2 for one unit of x1 is :

Number of unit of replaced resource (x2)Number of unit of added resource (x1)
Price Ratio (PR) = 
Cost per unit of added resourceCost per unit of replaced resource
Price of x1Price of x2

Therefore the least cost combination of two inputs can be obtained by equating MRS with inverse price ratio.

x2 * P2 = x1 * P1

read less
Comments
Dislike Bookmark

Looking for ICWA Coaching Classes

Find best ICWA Coaching Classes in your locality on UrbanPro.

FIND NOW

Lesson Posted on 06/07/2017 Exam Coaching/CA Coaching Exam Coaching/Company Secratary (CS) Coaching Exam Coaching/ICWA Coaching +12 Exam Coaching/CA Coaching/IPCC Group 1 Exam Coaching/CA Coaching/IPCC Group 2 Exam Coaching/CA Coaching/CPT Exam Coaching/ACCA Exam Coaching Tuition/Class XI-XII Tuition (PUC) Tuition/BCom Tuition Tuition/BBA Tuition Tuition/MBA Tuition Tuition/MCom Tuition Tuition/BCom Tuition/Income Tax Laws Tuition/BCom Tuition/Indirect Tax Laws Tuition/BBA Tuition/Taxation less

On GST road, There s No Checking India

Ca Prashanth Reddy

I enjoy teaching and interacting with students. Teaching is my passion, profession and hobby. Every student...

The ‘One Nation One Tax’ slogan isn’t just about uniform rate, it is also about removing check posts at borders, which often clog traffic for hours, delaying shipment of goods. While several states have been proactive in removing check posts voluntarily, many more are expected to dispense... read more

 The ‘One Nation One Tax’ slogan isn’t just about uniform rate, it is also about removing check posts at borders, which often clog traffic for hours, delaying shipment of goods.

While several states have been proactive in removing check posts voluntarily, many more are expected to dispense with the posts for commercial taxes on Saturday when the goods and services tax (GST) kicks in.

On Wednesday, the Bihar cabinet decided to stop checking of vehicles by commercial taxes department at six integrated border check posts and Madhya Pradesh too will do away with them.

Similarly, Karnataka CM Siddaramaiah has announced in the assembly that check posts will have no place in the GST regime but he did not specify the date.

What is, however, eye catching is that several states  from the “progressive ones” such as Gujarat, Maharashtra, Haryana, Rajasthan and Chattisgarh to UP, West Bengal and Odisha have done away with check posts.

UP was among the first ones dismantle its check posts in August 2008, while Bengal did so three years ago and Gujarat two years ago under Anandiben Patel.

But will this make life simple for truckers?

“Check- posts will not go away per se. Rather, checking of vehicles by only commercial taxes department officials would be stopped in adherence to rollout of GST,” said a Bihar government officer.

In Karnataka, the role of the physical verification centres will be to stop trucks and verify if the goods are as declared on the GSTN web portal.

Check posts virtually did the same job and officers suggested this system will continue till the replacement in the form of Electronic Way Bills takes off.

Among those who have done away with the border, UP has a similar system in the form of the mobile or flying squads, whose number has only gone up and they play havoc at night.

As anyone driving into Noida from Delhi can tell you, there are lathi-wielding inspectors and employees from the commercial tax department, who often erect barricades and stop almost every commercial vehicle, often throwing the stick (quite literally).

During the day, they are a little more selective. And, this has not changed despite change of administration. So, in case of several states, check posts have been removed, only on paper.

E-Way Bills:

When discussions on transition to GST began, the Centre was keen on reforming the current system to ensure trucks can move across borders freely.

After all, road transport accounts for 65% of freight volume. Although road infrastructure has vastly improved, stoppages at the state borders, some of which are notorious such as the one between Assam and West Bengal have meant that average distance travelled by vehicles have remained constant for three years and are estimated to cost the economy around $6.6 billion (over Rs 40,000 crore), apart from loss of fuel, an IIM Calcutta study estimated.

Currently, all trucks must halt at state borders (with check posts), although only 1% were non-compliant with the documents required. As a result, the Centre backed a risk-based assessment and suggested E-Way Bills.

Officers said that discussions have focused on merging several of the 20 checks that authorities from the states and the Centre conduct. But the complicated rules and a strong lobby from the states has meant that the reform initiative has had to be postponed although GST is ready to be rolled out from Friday.
 
Local Bodies:
 
While state commercial tax department’s check posts will go away, local bodies will still need trucks and commercial vehicles to stop and pay taxes, such as the ones erected by the three municipal corporations of Delhi. Brihanmumbai Municipal Corporation (BMC), the only local body in Maharashtra which collects octroi, has volunteered to do away with check posts from midnight on Friday, but the removal of the structures will still take some time.
read less
Comments
Dislike Bookmark

Lesson Posted on 06/07/2017 Tuition/BCom Tuition Exam Coaching/CA Coaching Exam Coaching/ICWA Coaching +1 Exam Coaching/Company Secratary (CS) Coaching less

Financial Statements

Vivek B

I am a qualified Chartered Accountant as well as a B Com (Hons) graduate from Sriram College of Commerce....

At the end of the accounting period the accounting books are closed and financial statements are prepared. Financial statements are a collection of reports about an organization's financial status. The main financial statements that are prepared at the end of each financial period are: 1. The Income... read more

At the end of the accounting period the accounting books are closed and financial statements are prepared. Financial statements are a collection of reports about an organization's financial status.

The main financial statements that are prepared at the end of each financial period are:

1. The Income statement, or the Profit & Loss Account

2. The Balance Sheet

3. The Cash Flow statement

In addition to the above, the Financial Statements also include 'Notes to the financial statements'. The Notes to the financial statements highlight important information that is left out of the main statements.

This is done to make things less complicated to the person reading the financial statements. These notes contain information that is complex and complicated. If this information was to be included in the main statements, the reader would not be able to interpret the main statements correctly.

read less
Comments
Dislike Bookmark

Lesson Posted on 02/07/2017 Exam Coaching/CA Coaching Tuition/BCom Tuition Exam Coaching/CA Coaching/IPCC Group 1 +11 Exam Coaching/CA Coaching/IPCC Group 2 Exam Coaching/ICWA Coaching Exam Coaching/Company Secratary (CS) Coaching Tuition/MBA Tuition Tuition/MCom Tuition Tuition/Class XI-XII Tuition (PUC) CBSE Exam Coaching/ACCA Exam Coaching Tuition/BBA Tuition Exam Coaching/CA Coaching/CPT Exam Coaching/CA Coaching/CA Final less

What did Albert Einstein say on income tax?

Ca Prashanth Reddy

I enjoy teaching and interacting with students. Teaching is my passion, profession and hobby. Every student...

Prime Minister Narendra Modi quoted Albert Einstein during his speech at the midnight launch of Goods and Services Tax. Mr. Modi said: “Einstein said if there is something in this world that is difficult to understand, it is income tax. I wonder what he would have said on seeing our multiple tax.” So... read more

Prime Minister Narendra Modi quoted Albert Einstein during his speech at the midnight launch of Goods and Services Tax. Mr. Modi said: “Einstein said if there is something in this world that is difficult to understand, it is income tax. I wonder what he would have said on seeing our multiple tax.”

So what is the story behind this quote?

According to Quote Investigator, a fact-checking blog, Einstein made this statement to his tax accountant Leo Mattersdorf. In a letter to Time magazine in 1963, eight years after Einstein’s death, Mattersdorf recalls the incident:

 

“One year while I was at his Princeton home preparing his return, Mrs. Einstein, who was then still living, asked me to stay for lunch. During the course of the meal, the professor turned to me and with his inimitable chuckle said: ‘The hardest thing in the world to understand is income taxes.’ I replied: ‘There is one thing more difficult, and that is your theory of relativity.’ ‘Oh, no,’ he replied, ‘that is easy.’ To which Mrs. Einstein commented, ‘Yes, for you.’”

Mattesdorfaccording Quote Investigator, was Einstein’s trusted tax adviser and that vouches for the authenticity of the quote. Plus, it also carries a letter from Mattesdorf’s grandson on his grandfather’s close association with the eminent physicist.

Down the years different versions of Einstein’s statement appeared in the media before it made its way into the Central Hall of the Indian Parliament.

 
read less
Comments
Dislike Bookmark

Looking for ICWA Coaching Classes

Find best ICWA Coaching Classes in your locality on UrbanPro.

FIND NOW

Lesson Posted on 25/05/2017 Exam Coaching/CA Coaching Exam Coaching/ICWA Coaching Exam Coaching/Company Secratary (CS) Coaching +10 Tuition/BBA Tuition Tuition/BCom Tuition Tuition/MBA Tuition Tuition/MCom Tuition CPT Coaching Tuition/BCom Tuition/Business Laws Tuition/BBA Tuition/Business Ethics & Corporate governance Tuition/BBA Tuition/Banking Regulations & Operations Tuition/BBA Tuition/Financial Accounting Tuition/BBA Tuition/Financial Management less

The Indian Contract Act, 1872.

Ca Prashanth Reddy

I enjoy teaching and interacting with students. Teaching is my passion, profession and hobby. Every student...

Nature Of Contract: Indian Contract Act, 1872 came into effect on 1st September 1872. It extends to the whole of India except the states of Jammu and Kashmir. The law of contract is that branch of law which determines the circumstances in which promise made by the parties to a contract shall be legally... read more

Nature Of Contract:

Indian Contract Act, 1872 came into effect on 1st September 1872. It extends to the whole of India except the states of Jammu and Kashmir.

The law of contract is that branch of law which determines the circumstances in which promise made by the parties to a contract shall be legally binding on them. All of us enter into a number of contracts everyday knowingly or unknowingly. Each contract creates some right and duties of the contracting parties. Indian Contract Act deals with the enforcement of these rights and duties upon the parties.

Definition, Meaning And Nature Of Contract:

The term “Contract” has been defined under Section 2(h) of Indian Contract Act, 1872. As per this, “an agreement enforceable by law is a contract”.

Thus to constitute a contract, firstly there must be an ‘agreement’ and secondly such an agreement must be ‘enforceable of law’.

Section 2(e) of Indian Contract Act, 1872 defines the term agreement as, “every promise or every set of promises forming the consideration for each other is an agreement”. It may be noted that for an agreement to be enforceable, it must be coupled with an obligation to do or abstain from doing a particular act.

Therefore, in the broadest sense, a contract is an exchange of promises by two or more persons, resulting in an obligation to do or abstain from doing a particular act, which obligation is recognised and enforced by law.

It may be noted that those agreements in which there is no intention to create legal relations are not contracts. For instances, agreements relating to socials matters are not contracts. Thus, all agreements are not contracts. But all contracts are agreements.

To Conclude “Agreement Is A Wider Concept Whereas Contract Is A Narrower Concept”

Essential Elements Of A Valid Contract:

Section 10 of the Indian Contract Act, 1872 provides the following:

“All agreement are contracts, if they are made by free consent of parties competent to contract, for a lawful consideration and with lawful objects, and are not hereby expressly declared to be void.”

Thus, the essential elements of a valid contract are:

  • An offer or proposal by one party and an acceptance of that offer by another party resulting is an agreement.
  • Free consent of the parties is present.
  • The parties to contract are legally capable of contracting The agreement is supported by consideration.
  • The consideration and object of the contract is legal.

On The Basis Of Enforceability:

  1. Valid contract: An agreement which has all the essential elements of a contract is called a valid contract. A valid contract can be enforced by.
  2. Voidable contract [Section 2(i)]: An agreement which is enforceable by law at the option of one or more of the parties thereto, but not at the option of other or others, is a voidable contract. If the essential element of free consent is missing in a contract, the law confers right on the aggrieved party either to reject the contract or to accept it. However, the contract continues to be good and enforceable unless it is repudiated by the aggrieved party.
  3. Void contract [Section 2(j)]: A void contract is a contract which ceases to be enforceable by law. A contract when originally entered into may be valid and binding on the parties. It may subsequently become.
  4. Void agreement [Section 2 (g)]: An agreement not enforceable by law is said to be void. Such agreement does not confer any right to any of the parties to it. The agreement, in such a case, is the void ability (from the very beginning). Such an agreement does not result in a contract.
  5. Illegal agreement: An agreement is illegal if it is forbidden by law; or if of such nature that, if permitted, would defeat the provisions of nay law or is fraudulent; or involves or implies injury to a person or property of another, or court regards it as immoral or opposed to public policy. These agreements are punishable by law. These are void ab initio. All illegal agreements are void agreements but all void agreements are not illegal.
read less
Comments
Dislike Bookmark

Lesson Posted on 22/05/2017 Exam Coaching/CA Coaching Exam Coaching/Company Secratary (CS) Coaching Exam Coaching/ICWA Coaching +11 Exam Coaching/MBA Entrance Coaching Tuition/MBA Tuition Tuition/BCom Tuition Tuition/BCom Tuition/Accounting Information Systems Tuition/BCA Tuition Tuition/BCA Tuition/Accountancy Tuition/BCom Tuition/Business Mathematics and Statistics Tuition/BCom Tuition/Business Taxation Tuition/MCom Tuition Exam Coaching/ACCA Exam Coaching Tuition/Class XI-XII Tuition (PUC) less

GST By CA Prashanth Reddy

Ca Prashanth Reddy

I enjoy teaching and interacting with students. Teaching is my passion, profession and hobby. Every student...

GST on services fixed; Ola, Uber rides and flights to be cheaper, education and health exempt. The GST Council on Friday finalised tax rates for services under the Goods and Service Tax (GST) regime, scheduled to kick-in from July 1 at the end of day 2 of the meeting held in Srinagar. Healthcare and... read more

GST on services fixed; Ola, Uber rides and flights to be cheaper, education and health exempt.

The GST Council on Friday finalised tax rates for services under the Goods and Service Tax (GST) regime, scheduled to kick-in from July 1 at the end of day 2 of the meeting held in Srinagar.

Healthcare and education would be exempt from GST

Here are the highlights of new tax laws:

5:10pm: Travelling on metro, local train, religious travel, Haj yatra will all be exempt from GST: revenue secretary, Hasmukh Adhia.

5:05pm: “The proposed tax straucture under GST is much more complex to what we have at present,” said Pratik Jain, partner and leader of indirect tax at PwC India.

4:55pm: AC train travel to get cheaper under GST.

4:50pm: Mobile operators lobby, COAI expresses displeasure at 18% tax on telecom. Will impact infrastructure creation in telecom sector.

4:45pm: Movie-going to get cheaper with 28% tax on cinema halls.

4:43pm: GST likely to be non-inflationary as the government has kept a majority of food items, that form 50% of the consumer price index, out of the tax net.

4:33pm: E-commerce players to deduct tax at source before paying suppliers. E-retailers such as Flipkart and Snapdeal to pay GST.

4:22pm: Sensex gains 30 points after GST Council finalises rates.

4:18PM: Tax experts: Flights to get cheaper while hailing cabs through cab aggregators will cost marginally less.

4.05pm: 5% tax to be levied on cab aggregators like Ola and Uber, says Arun Jaitley.

 

4.02pm: Telecom, financial services to attract GST of 18%; 28% tax for race club, betting and cinema halls: Jaitley.

4pm: AC restaurants and those with liquor licence to charge 18% GST, while 5-star hotels will levy 28%; hotels with tariff of Rs 1,000-2,500 to pay 12% rate, clarified finance minister, Arun Jaitley at the end of the meeting in Srinagar.

Restaurants with turnover of Rs 50 lakh or below to face 5% tax under GST and non-AC restaurant at 12%.

3.50pm: Transport services will attract 5% GST.

3.40pm: Live animals, fruit juices and meat will call for a 12% tax along with butter and cheese. Condensed milk under 18%.

Coffee (not instant), tea and groundnut and fish will attract 5% under GST.

3.30pm: Kerala Finance Minister Thomas Issac said there will be four rates for services at 5%, 12%, 18% and 28%, similar to tax slabs for goods.    

3.20pm: The tax rate on gold has not been finalised yet, he said, adding that the Council will meet again on June 3.

The Council in its meeting on Thursday decide the tax rate on 1,211 goods, keeping most food items out of the purview of GST. Bindi, vermilion, glass bangles, handlooms, hearing aids and handmade musical instruments have also been exempt under GST. A total of 7% of items have been kept zero rated.

While jaggery is exempt under GST, cane sugar and beet sugar are in the 5% tax slab. Bio gas plant, wind mills and kerosene lantern and coal will also be under the 5% tax rate.

Mobile phones, fountain pen ink, tooth powder, incense sticks, feeding bottles, Braille paper, children’s colouring books, umbrellas, pencil sharpeners, tractors, bicycles, contact lenses, spectacle lenses, utensils, sports goods, fishing rods, combs, pencils and hand paintings have been placed under the 12% tax rate under GST.

The goods which will fall under 18% tax rate include helmets, LPG stoves, nuclear reactors, clocks, military weapons, electronic toys and plastic buttons.

The items which have been put in the highest tax slab of 28% include aerated drinks, perfumes, after-shave lotions, deodarants, clothing of furskin, razor blades, cars, revolvers, pistols,

More than 200 products appear in the 28% tax slab.

read less
Comments
Dislike Bookmark

Lesson Posted on 25/05/2017 Exam Coaching/CA Coaching Exam Coaching/Company Secratary (CS) Coaching Exam Coaching/ICWA Coaching +12 CPT Coaching Tuition/MBA Tuition Exam Coaching/MCA Coaching Tuition/BBA Tuition Tuition/BCom Tuition Tuition/Class XI-XII Tuition (PUC) Tuition/BBA Tuition/Auditing Tuition/BCom Tuition/Business Laws Tuition/BCom Tuition/Company Law Tuition/BCom Tuition/Income Tax Laws Tuition/BCom Tuition/Indirect Tax Laws Tuition/MCom Tuition less

Essential Elements of a Valid Contract

Ca Prashanth Reddy

I enjoy teaching and interacting with students. Teaching is my passion, profession and hobby. Every student...

Essential Elements of a Valid Contract: (i) Agreement: In order to constitute a contract, there must be an agreement in first place. An agreement in turn is composed of two elements-offer and acceptance. Thus there must be at least two parties-one making the offer and another accepting it. The terms... read more

Essential Elements of a Valid Contract:

(i) Agreement:

In order to constitute a contract, there must be an agreement in first place. An agreement in turn is composed of two elements-offer and acceptance. Thus there must be at least two parties-one making the offer and another accepting it. The terms of offer must be definite and the acceptance must be absolute and unconditional.

(ii) Free Consent:

According to Sec 14, ‘Consent is said to be free when it is not caused by coercion, undue influence, fraud, misrepresentation or mistake. If consent is not free, then no valid contract comes into existence. This will discussed in detail subsequently.

(iii) Lawful consideration:

The agreement must be supported by a lawful consideration. Consideration means ‘something in return’. ‘Something in return’ may be an act or abstinence. But it must be real and lawful. This will be discussed in detail subsequently.

(iv) Parties are competent:

The parties to an agreement must be capable of entering into a contract. A person is considered competent if he is (a) eighteen years of age (b) of sound mind (c) not disqualified from contracting by any law to which he is subject. Existence of free consent implies the consent of the parties must be free and genuine i.e. not induced by coercion, undue influence, fraud or misrepresentation. This will be discussed in detail subsequently.

(v) Legality of object:

There must be legality of object and consideration failing which it will not be a valid contract. This will be discussed in detail subsequently.

(vi) Legal Relationship:

The parties must intend to create a legal relationship. Agreements of social or domestic nature do not contemplate legal relationship, so they are not contracts.

Example: A husband promising his wife to buy her a ‘necklace’ on occasion of her birthday is not a contract.

(vii) Agreements not expressly declared to be void:

The agreement not expressly declared void or illegal by law. This will be discussed in detail subsequently.

(ix) Certain and Capable of Performance:

The terms of agreement must be certain and capable of performance.

Example: D agrees to sell C garments. The type, quality, value etc are not discussed. The agreement cannot be enforced as terms are uncertain. Similarly, if A promises B to bring rainfall through magic. Such agreement cannot be enforced.

read less
Comments
Dislike Bookmark

Looking for ICWA Coaching Classes

Find best ICWA Coaching Classes in your locality on UrbanPro.

FIND NOW

Lesson Posted on 25/05/2017 Exam Coaching/ICWA Coaching Exam Coaching/CA Coaching Exam Coaching/Company Secratary (CS) Coaching +11 Tuition/MBA Tuition Tuition/MCom Tuition Tuition/BCom Tuition Tuition/BBA Tuition Tuition/Class XI-XII Tuition (PUC) CPT Coaching Tuition/BCom Tuition/Accounting Information Systems Tuition/BCom Tuition/Advertising Tuition/BCom Tuition/Auditing and Corporate Governance Tuition/BCom Tuition/Banking Law and Operation Tuition/BBA Tuition/Auditing less

Process Costing

Ca Prashanth Reddy

I enjoy teaching and interacting with students. Teaching is my passion, profession and hobby. Every student...

Introduction Process Costing is a method of Costing used in industries where the material has to pass through two or more processes for being converted into final product. It is defined as a method of Cost accounting where by Costs are charged to processes or operations and averaged over the units produced. Features... read more

Introduction

  1. Process Costing is a method of Costing used in industries where the material has to pass through two or more processes for being converted into final product.
  2. It is defined as a method of Cost accounting where by Costs are charged to processes or operations and averaged over the units produced.

Features of process Costing:

Process Costing can be applied in such industries having following features:

  1. They should be number of processes to manufacture a product.
  2. Output of one process becomes input of another process.
  3. All the end products will be similar units & it is not possible to trace the identity of any particular lot of output to a particular lot of input.
  4. Production of a product may give rise to joint products and By - products.

Treatment of normal loss, abnormal loss abnormal gain.     

A Introduction: 

Loss of material is inherent during the process of operation. They are two types of losses:

  1. Normal loss
  2. Abnormal loss

  1. Normal loss is defined as loss which is inherent in the nature of work & loss which can be reasonably predetermined

Accounting treatment: 

(a)  Cost of normal loss is absorbed by good units produced under the process.

(b)  Any amount realised by sale of normal loss is to be credited to the process account.

  1. Abnormal loss: It is defined as loss in excess of predetermined loss.

                 Abnormal loss may occur due to:

  • (a) Carelessness of worker
  • (b) Bad plant design

Accounting treatment: Cost of abnormal process loss is to be computed as we compute cost of the good units.

  1. Total Abnormal process loss is credited to process account from which it arises.

Entry :             Abnormal loss       A/c   …   Dr.

                                          To process       A/c

  1. Total cost of the abnormal process loss is debited to costing profit & loss A/c

Costing P & L    A/c   …   Dr.

      To Abnormal process loss    A/c

  1. Any amount absorbed by sale of abnormal loss should be transferred to Costing P & L A/c.

Abnormal loss can be controlled by taking suitable measures.

Abnormal gain:  If in a process the actual loss (which is inherent in a process i.e., normal loss) is less than the estimated normal loss the difference is considered as Abnormal gain.

Accounting treatment:  Abnormal gain is accounted in the same way as abnormal loss.

The value of abnormal gain units should be computed in the same way we complete cost of good units.

Entry :             Process   A/c   …   Dr.

                              To Abnormal gain    A/c

  1. Abnormal gain Account is debited with a figure of reduced normal loss (in units & value).

The balance in abnormal gain will be transferred to costing P & L A/c.

            Entry :             Abnormal gain   A/c   …   Dr.

                                          To costing P&L   A/c

 

read less
Comments
Dislike Bookmark

About UrbanPro

UrbanPro.com helps you to connect with the best ICWA Coaching Classes in India. Post Your Requirement today and get connected.

Overview

Questions 12

Lessons 61

Total Shares  

Top Contributors

Connect with Expert Tutors & Institutes for ICWA Coaching

x

Ask a Question

Please enter your Question

Please select a Tag