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A customer of X Ltd. Has discontinued hi...

A customer of X Ltd. Has discontinued his business. He used to purchase 30% of the total goods produced by X Ltd. Is it a relevant information in your opinion and should be disclosed by X Ltd.

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Yes. The information is of material interest to the users of financial statements and must be disclosed as per the Convention of full disclosure.
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DK GOEL-ACCOUNTING PRINCIPLES-HIGHER ORDER THINKING SKILLS (HOTS) QUESTIONS
  1. What is meant by GAAP?

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  3. A customer of X Ltd. Has discontinued his business. He used to purchas...

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  4. X Ltd. Gets a contract of ₹ 100 crore to build a Shopping-Mal to be co...

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  5. Under which principle the calibre or quality of the management is not ...

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  6. Which accounting principle states that all anticipated losses should ...

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  7. According to which concept, depreciation is to be charged as per one p...

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  8. Why the full cost of an asset is not treated as an expense in the year...

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  9. During the year the company purchased ballpoint pens of ₹500. These we...

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  10. A debtor who owes ₹ two lac to the Company is rumoured to be declared ...

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  11. Goods withdrawn by the proprietor for his personal use has not been re...

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  12. In a business provision for doubtful debts is created @5% on debtors e...

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  13. A firms has stationery stock accounting of ₹400 as at the end of finan...

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  14. Why closing stock is valued at cost price or realisable value whicheve...

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  15. Do you think that the Convention of conversation results in creation o...

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  16. Identify the value involved in the assumption of going concern.

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  17. Why fixed assets are not shown in the books at market value?

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  18. Why the entire life of the business enterprise is divided into time-in...

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  19. A company purchased goods for ₹5,00,000 and sold 80% of such goods dur...

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  20. On 25th March, 2017, a fire broke out in the premises of Kamal Ltd. An...

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