How the loss due to fraud by cashier will be recognized in the books of Unicorn Limited?

CA Intermediate · Advanced Accounting · PYQS · May 2026
How the loss due to fraud by cashier will be recognized in the books of Unicorn Limited?
(A) Loss of 2,80,000 should be recognized in the Profit and Loss account for the year ended 31 March, 2027.
(B) Loss of 2,80,000 should be recognized in the Profit and Loss account for the year ended 31 March, 2026.
(C) Loss of 1,40,000 should be recognized in the Profit and Loss account for the year ended 31 March, 2026.
(D) Loss of 2,10,000 should be recognized in the Profit and Loss account for the year ended 31st March, 2026 and balance loss of 70,000 should be recognized in the Profit and Loss account for the year ended 31st March, 2027.

Suggested Answer and Working Notes:

Correct Answer: Option (B)

Loss of 2,80,000 should be recognized in the Profit and Loss account for the year ended 31 March, 2026.

Topics: AS 21

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