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3 tests for buyback
Accountancy
answered on 23-Nov-22 19:01
Just a quick question. In the attached problem, the securities are bought back at Rs.30. Rs.10 is F.V and the rest is premium on bb. While calculating the third test we are allowed Rs 150cr to buy back, but Sir is splitting this between CRR creation and buyback as a total of Rs. 40 for one share. So if we are allotting Rs.10 to CRR the rest for bb should be Rs.20 right? Why is he taking it as Rs. 30 for bb and Rs.10 for CRR?
latest answer
30 - Buy back value 10 reduces share capital 20 reduces reserves And further 10 is transferred from free reserves to CRR
Sri Murthy
CMA Inter
★ 0
2
812
Liquidation of companies
Accountancy
answered on 23-Nov-22 00:15
Can anyone tell me how to solve this sum using sathyaragu sir method. He asked us to find rate per share Iam not getting the correct answer
latest answer
CONVERT SHARES INTO Equivalent SHARES BY SELECTING A FV AS BASE AND THEN SOLVE
vs navin
CA Final
★ 1K+
5
316
Liquidation of companies
Accountancy
answered on 21-Nov-22 22:46
In illus 2, how this balance of unsecured creditor 25000 came?
latest answer
Amount realized is 100000 Secured creditors is 125000 Unsecured creditors= 125000â??100000=25000
vs navin
CA Final
★ 1K+
1
379
ACC
Accountancy
answered on 22-Nov-22 20:49
Is that backward account current is very important for examination point of view pls so that i can prepare right now Boz i don't learn this topic.... Till now.... Someone's suggest me.
latest answer
Okay
Balachandar S
CA Inter
★ 59K+
7
416
Valuation of Goodwill
Accountancy
answered on 22-Nov-22 13:58
Can anyone explain why is loss by fire added to the profit in the below image ...
latest answer
FOR GOODWILL CALCULATION WE SHD EXCLUDE ABNORMAL GAINS OR LOSSES
Jahnavi Jaijapuram
CA Foundation
★ 6K+
8
438
Capital Redemption Reserve
Accountancy
answered on 22-Nov-22 14:01
Hello all, here's something I need some clarification on; in buying back shares, there are two ways to do it, fresh issue and thru the CRR creation. The extent to which CRR can be created = F.v of the shares bought back - F.V of the shares issued for such buy back.( This is not referring to fresh issues right? Otherwise there is no reason for CRR ) What does the second part of the above formula reference to?
latest answer
Okay
Sri Murthy
CMA Inter
★ 0
4
487
CA foundation Accountancy
Accountancy
answered on 21-Nov-22 17:11
Is preparing Manufacturing Account in our CA foundation syllabus ?
latest answer
Yes. It is there.
Ardhendu Sekhar Acharya
CA Inter
★ 250
13
401
Doubt
Accountancy
answered on 21-Nov-22 07:58
Purchases we post in trading account debit side, what I know but you said that purchases sits in p & l account how? U said adjusted purchases sits in profit and loss account so plz clear this point.
latest answer
1.Trading account profit will be transfer to P&L A/C .now their is an un recorded purchase amount xxx . 2.Now waht will you have to do you have to increase purchase That's mean the profit had to be decreased. 3.But already you closed trading account by transferring profit to the CREDIT SIDE OF THE P&L A/C. 4 Now you have to reduce the pfofit by way of increasing PURCHASES . That's why we will post adjust purchases in Debit side of p&l a/c.
Anil Raj
CA Foundation
★ 580
3
384
Pre and Post incorporation P/L
Accountancy
answered on 20-Nov-22 16:09
The interest that company pays to the owner of previous business, while acquiring that business, must be the expenditure of/attributable exclusively to company only (and not of the firm), because it's the expense of company and not the firm (only company is liable to pay it to the firm) then why do we apportion this interest expense between pre and post incorp period (it should be posted exclusively to post incorp period, just like director's salary or interest on debentures - exclusively attributable to company)?
latest answer
If you paid interest on purchase consideration. The interest amount needed to capitalise. So prior period interest is to get capitalised and transfer to pre incorporation period. The remaining amount is treated as a loan taken not like purchase consideration.
Garima Bhargava
CA Inter
★ 185
1
417
Cash flow statement
Accountancy
answered on 20-Nov-22 14:36
While preparing CFS under the indirect method why should we add a decrease in prepaid expenses?
latest answer
Okay.
Jitendra Kumar
CA Final
★ 41K+
5
387