Redemption of preference shares

answered on 08-Jun-23 15:43

Here please tell whether to use 12 or 10 for dividing 6000 I think 12 because Securities premium only cannot be used for redemption of preference shares but premium on issue of debentures is a capital profit and credited to capital reserve a.c and Capital reserve can be used for redemption of preference shares and hence I used 12 Am I correct ??

latest answer

Thank you sir

Krishnan K

CA Inter

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337

Redemption of preference shares

answered on 08-Jun-23 14:35

Please tell whether option(a) or (b) .which is correct and why?

latest answer

No of equity shares to be issued = 5,000/10 = 500 Amount collected on issue of shares = 500 x 12 = 6000 Premium on redemption to be provided out of P&L

Krishnan K

CA Inter

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11

351

Esop

answered on 07-Jun-23 09:01

Won’t the options get reduced year by year by 25%? Is my answer correct?

latest answer

Yes.

Sugam SM

CA Foundation

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4

277

GROSS PROFIT A/C

answered on 14-Jun-23 17:15

Sir, In your video lecture of final accounts of profit organizations, the balancing figure that we arrived in trading a/c you mentioned as GROSS PROFIT c/d. But in the Journal entry you put it as TRADING A/C Dr To GROSS PROFIT A/C, IF the journal entry is like this , why do we mention " TO GROSS PROFIT c/d "in the trading a/c. It should have been "GROSS PROFIT A/C" . In the same way, in the profit and loss a/c it is shown us " BY GROSS PROFIT b/d" , but in the journal entry sir says that GROSS PROFIT A/C DR. TO PROFIT AND LOSS A/C. If the journal entry is like above , then in the Profit and Loss a/c, it should have been shown us " GROOS PROFIT A/C" but we show it as" GROSS PROFIT c/d". Could you please explain the reason for this difference sir. "GROSS PROFIT A/C

latest answer

1)Trading A/c 2)Profit and loss account 3) Balance Sheet Trading account A/C dr To Gross profit.

Thankachan Jimmy

CMA Inter

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5

323

Accounting standards

answered on 06-Jun-23 00:39

Who give , who ammends accounting standards? Central government or icai or other??

latest answer

Accounting Standards Board (ASB) of the Institute of Chartered Accountants of India

Sri ram Pothineni

CA Inter

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2

315

AS-9

answered on 07-Jun-23 09:07

If a company sales goods on credit and have uncertainty then it is not recognised as revenue and meanwhile the year ends so is there any accounting treatment for this situation

latest answer

Inventory is transferred. So automatically the Cost of goods sold would be higher. No revenue is recognised. So loss would get booked automatically.

Atharv Sankliya

CA Final

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7

339

Stock in trade

answered on 05-Jun-23 08:24

Can cash be considered as stock in trade in banks?

latest answer

Stock in trade is something which you would trade (buy or sell). Cash is not stock in trade.

Sowmiga Chandrasekaran

CA Inter

★ 7K+

3

289

hire purchase

answered on 04-Jun-23 20:34

What will be the journal entry the hire vendor pass while making an agreement of hire purchase ?

latest answer

Hire Purchaser A/c Dr. To Hire Sales A/c (Being an asset sold on hire purchase) Bank A/c Dr. To Hire purchaser A/c (Being down payment received)

Snehashis Mohanty

CA Inter

★ 5

3

285

Consignment

answered on 04-Jun-23 18:34

In calculating stock reserve on closing stock (total goods×difference between invoice price) is given in book but in the sum which I attached is calculated in different manner.

latest answer

Ok sir

Lathika

CA Inter

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3

342

Consignment stock valuation

answered on 05-Jun-23 08:27

Can anyone tell why normal loss value is not deducted from the stock only quantity is. This is from April mtp

latest answer

Go through this video.

Sai Prasanth

CA Foundation

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3

280