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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
428
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
370
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
339
Branch Accounting - Independent branch - 24. Illustration - 8
Accountancy
answered on 16-May-23 17:06
In this above question, it is given goods are invoiced at Cost + 20% on sale price. While preparing trading account of the branch we are assuming the amounts given for opening stock and goods from H.O are at invoice price and so we are adjusting(reducing) the amounts to only cost values in trading A/c. Following the same assumption isn't it more logical to assume the goods returned to H.O are also in par with the goods received and assume they are at invoice price. Consequently shouldn't we adjust the returns amount to cost. kindly clarify.
latest answer
Sorry I didn't notice that. Thanks for the reply sir.
Aswin Chandar
CA Final
★ 40K+
2
561
CA foundation Accountancy Compulsory 4 marks Theory question
Accountancy
answered on 15-May-23 10:51
Is the compulsory 4 marks Theory question which comes in the Question no. 1 in the Accountancy paper ( Paper 1 ) of CA foundation, does that question comes from the questions given at the end of every chapter or the question can be asked from anywhere from inside the chapters ?
latest answer
Ok Thank you
Ardhendu Sekhar Acharya
CA Inter
★ 250
2
757
Adv
Accountancy
answered on 16-May-23 15:18
Icai ask questions in different way in your resources questions ask in different way
latest answer
Pls refer to past exams question.
R K
ACCA Skill
★ 9K+
3
296
Average due date
Accountancy
answered on 16-May-23 15:24
What should I take for calculating due date, Date of drawing or date of acceptance??
latest answer
Date of drawing. However for sight bills, date of acceptance.
Jaswanth P
CA Inter
★ 3K+
1
287
Inventory and ppe in service industry
Accountancy
answered on 16-May-23 15:25
Inventory in service industry is consumed in rendering of service & Ppe in service industry is used in rendering of service Is this right??
latest answer
You can use it for understanding.
Atharv Sankliya
CA Final
★ 3K+
1
252
Partnership
Accountancy
answered on 14-May-23 10:18
Will investment allowance reserve be distributed among the partners?
latest answer
It will be distributed at retirement, death or dissolution
Nidhi S
CA Inter
★ 4K+
2
322
General
Accountancy
answered on 17-May-23 12:00
At what cases Assets and liabilities of the company are revalued
latest answer
These guidances are given by respective standards. For e.g PPE would be revalued if the entity follows revaluation model under AS-10. Similarly some liabilities which are carried at Fair value would be revalued.
Krishnan K
CA Inter
★ 5K+
1
296