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Payment of preference dividend
Accountancy
answered on 18-May-23 17:48
In this ques, what will be the journal entry to pay dividend on 10% preference shares also what will be the amount (10% of 35000 i e. After dep.profits)
latest answer
Okk sir
Garima Bhargava
CA Inter
★ 185
4
388
Sir in account without format mark deducted
Accountancy
answered on 19-May-23 07:01
Sir and tax also
latest answer
In accounts format is important especially in company final accs, Ppi small small thing will carry makrs don't concentrate on preparation by using an scale and pencil... Do the necessary format and refer the AIR 1 student marksheet which is there under this app For DT also u see the AIR 1 same
R K
ACCA Skill
★ 9K+
1
406
DISSOLUTION OF PARTNERSHIP UNDER PIECE MEAL DISTRIBUTION MAXIMUM LOSS METHOD.
Accountancy
answered on 17-May-23 14:26
IN ILLUSTRATION -5 HAVE CASH BALANCE RS. 500/- AND EXPENSES UNDER REALISATION RS.400/-. IN THE SILUTION DID NOT CONSIDER THE ABOVE SAID AMOUNTS WHY?. IF ASSUME WE CAN PAY EXPENSES FROM AVAILABLE CASH RS.500/- STILL WE HAVE RS 100/- SURPLUS.
latest answer
OK SIR NOTED, THANKS.
Anjaneyulu Goriparthi
CA Inter
★ 15K+
5
564
Rounding off on Average due date
Accountancy
answered on 05-Jun-23 10:14
Sir/ma'am if <0.5 then lower round off? Eg.12.4=12 If >or= 0.5 the upper round off? Eg.12.6=13 12.5=13?
latest answer
if due date is fraction, round it off to the nearest whole number.
Hena Desai
CA Foundation
★ 5
4
290
Provision for bad and doubtful debts
Accountancy
answered on 17-May-23 00:04
1)In some problems, when credit balance of PBDD is given, and debit PBDD is found in adjustments, the net amount is written in P and L a/c 2)But in some problems, PBDD a/c is drawn, bad debts are written off and then the amount to be taken to P and L a/c is ascertained. When to do 1 and when to do 2??
latest answer
I got the answer, thank you
Jaswanth P
CA Inter
★ 3K+
1
369
Forfeiture of shares
Accountancy
answered on 17-May-23 11:34
Is this correct: Forfeiture shares a/c 50,000 To Capital Reserve a/c 50,000
latest answer
It is also correct
Lathika
CA Inter
★ 6K+
5
408
Assets held for marketing purpose
Accountancy
answered on 21-May-23 07:35
Does assets held for marketing purpose qualify to be an PPE
latest answer
Yes it will qualify
Atharv Sankliya
CA Final
★ 3K+
2
271
Creation of CRR
Accountancy
answered on 17-May-23 12:08
CRR (capital redemption reserve) is to be created on the same day the company redeems preference shares(PS), or can be created at the end of Financial year in which redemption of PS took place . For eg. In FY 2022-23, Redemption too place on 28 January, 2023, so CRR has to be created on 28 Jan 2023 only, or we can also create it on 31 March 2023 (end of same FY in which redemption took place)?
latest answer
Ok sir
Garima Bhargava
CA Inter
★ 185
2
427
Redemption of preference shares
Accountancy
answered on 16-May-23 20:00
We know there are 2 ways we can redeem preference shares (PS), one is by making fresh issue of shares and other is transferring divisible profits to CRR. All this to provide protection of creditors n outside liabilities. The question is, no doubt by fresh issue we can bring in money/funds (BCz it will increase bank balance) and then creditors can be assured that they can be paid from those funds later, if need arises (since redemption of PS would've decreased the bank funds) BUT in case we create CRR out of divisible profits, we are not introducing any additional funds/bringing any money into the company, rather we are just transferring from one reserve to another and asset side of balance sheet doesn't increase (funds doesn't increase in this case) then how can creditors feel assured/protected by creation of CRR? And even tho we created CRR, the bank bal.would've decreased on asset side. Also CRR can be used later just to issue bonus shares (ie. It increases capital ultimately), but bonus issue is optional, what if company never issues bonus out of CRR and let CRR remain same/maintained till eternity, how can creditors feel safe with CRR balance? Can CRR bal.be directly used to pay off creditors later during liquidation (so that they will feel secure with CRR balance too)
latest answer
Ok sir, thanks for clearing
Garima Bhargava
CA Inter
★ 185
4
369
Redeeming partly paid up preference shares
Accountancy
answered on 16-May-23 16:54
Why there is a provision that only fully paid up preference shares can be redeemed, what harm could've been done if partly paid up shares would've been redeemed and why it is discouraged Like company could've paid back pref.share holders whatever amount they've paid on those shares (if only ₹75 are paid up on shares of FV ₹100 then co.could simply pay back ₹75 to such pref.share holders and redeem those shares)
latest answer
Ok sir
Garima Bhargava
CA Inter
★ 185
2
338