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Explain in simple terms

Accountancy

answered on 04-Oct-23 11:09

1) What is meant by carrying amount? 2) Waht is the difference between cancellation and reduction of share capital ( give an example )

latest answer

Carrying amount means book value. Example asset valued after depreciation. Cancellation of share capital means already issued shares are cancelled In case of reduction, the corresponding amount would be debited with the amount of reduction

Nayani Agarwal

Nayani Agarwal

CA Inter

1K+

1

495

Redemption of preference shares

Accountancy

answered on 04-Oct-23 14:49

In the first adjustment, though preference dividend is paid, why no entry? Can anybody say?

latest answer

You can assume it either ways and solve. make a note in the examination

HARI HARAN

HARI HARAN

CFA L1

170

6

442

Investments

Accountancy

answered on 02-Oct-23 20:45

I didnt understand anything Can any one explain this .

latest answer

Since the share price reduces upon issue of rights to offset it to the extent of cost of investment it is applied to reduce cost and balance charged to p&l This is because while you bought investment you paid for the investment and right to buy additions( rights and bonus) and since the rights are sold and market price has reduced you are offsetting ur cost of investment to cost without right ( ex right cost) So for second question 10,000 should be credited to cost of investment and 2000 to p&l

V S R Krishna

V S R Krishna

CA Inter

795

1

433

How to solve AS based question

Accountancy

answered on 03-Oct-23 09:12

How to solve AS based question ?should I learn it line to line?

latest answer

Thank you sir

Atharv Sankliya

Atharv Sankliya

CA Final

3K+

4

483

How to solve AS based question

Accountancy

answered on 04-Oct-23 14:55

How to solve AS based question ?should I learn it line to line?

latest answer

Thankyou sir

Atharv Sankliya

Atharv Sankliya

CA Final

3K+

3

408

Branch accounts (debtors method)

Accountancy

answered on 04-Oct-23 14:51

In branch account that head office (HO)creates, we show liabilities given to branches on CR.side. the ques is why does HO gives its liabilities to the branch? why would branch be interested in taking HO's liabilities, if they are taking HO's assets that makes sense that they need it to operate, but why would they take liabilities and pay them off on behalf of HO?

latest answer

branch may use cash generated to directly settle the liabilities.

Garima Bhargava

Garima Bhargava

CA Inter

185

1

371

AS 1

Accountancy

answered on 04-Oct-23 15:44

Can someone explain this in simpler terms?

latest answer

Okay Sir

Soon to be CA

Soon to be CA

CA Inter

4K+

3

475

Capital Maintenance

Accountancy

answered on 04-Oct-23 15:04

How is the value ₹14400 obtained?

latest answer

18000/2.5*2

Soon to be CA

Soon to be CA

CA Inter

4K+

1

454

May 2024

Accountancy

answered on 02-Oct-23 10:30

Is there any possibility of asking such theoretical questions in the exam? Which is provided in the study material?

latest answer

Yes

Soon to be CA

Soon to be CA

CA Inter

4K+

7

439

Investment acc

Accountancy

answered on 04-Oct-23 16:21

Current investment should be valued at lower of COST or fair value. Here cost means historical cost or carrying cost

latest answer

Thank you

Krishnan K

Krishnan K

CA Inter

5K+

6

434