Loss of Profit Topic

answered on 22-Jul-22 12:59

Sir, Generally when we are given an Upward Trend in Sales, we will apply it in Standard Turnover and make it Adjusted Standard Turnover,Also we will apply the trend in Annual Turnover and make it Adjusted Annual Turnover, But we don't apply it in Previous Years Turnover (Used to find GP Ratio in Loss of Profit Policy), But in Illustration 9 (Buildwell Ltd), The Trend is also taken in Previous yar Turnover, Why is that? Please Clarify.

latest answer

It says agreed adjustments.

Asim Saif

CA Inter

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Redemption of preference shares

answered on 18-Jul-22 22:22

In this practical question no 1 can we convert 4,000 preference shares of rupees 10 each into fully paid preference shares and redeem them? In module they have only redeemed preference shares of worth rupees 1,80,000(18,000 shares*rupees 10)

latest answer

Most welcome

Dharshini Sankar

CA Inter

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280

Branch accounts

answered on 22-Jul-22 21:47

How does goods marked on invoice price help achieve the objective of effective control on stock? Please elaborate

latest answer

Thankyou

Rinuja TK

CA Inter

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AS-10

answered on 18-Jul-22 14:17

Sir here they have clearly mentioned salaries of staff who will be preparing store, so this should be capitalised right then why we should assume the other way...

latest answer

Ohh okay sir

Sugam SM

CA Foundation

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Intrinsic value

answered on 18-Jul-22 22:07

Please explain this term intrinsic value

latest answer

intrinsic value of a share means if the company is liquidated today then how much every shareholder would recieve. Intrinsic value = Total assets - Outside liabilities - Pref div (unpaid) - Preference share capital ÷ No of equity shares. It is an important measure which also helps people to determine whether the share is overpriced or not.

Balaji R

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Redemption of preference shares

answered on 18-Jul-22 15:45

Premium on redemption of preference shares is provided out of p&l a/c So when we issue equity shares or use both distributed divisible profits and issue new equity shares to redeem preference shares, should we consider premium on redemption while calculating the amount to be raised by equity shares??

latest answer

Thank you sir. After watching the video twice I got my answer.

Dharshini Sankar

CA Inter

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Meaning of pro rata allotment in issue of shares and how it works

answered on 17-Jul-22 18:31

First time asking questions here, so please ignore any mistakes. Can someone please explain how pro rata allotment works for company and aslo the individual who has applied for excessive shares?

latest answer

Pro rata allotment is used when there is oversubscription of shares. Eg. If company issues 100,000 shares and 200,000 shares are subscribed by the public it is known as oversubscription. The company may apply pro rata allotment in the ratio of 2:1 ie. For every 2 shares, 1 share is issued to the person. So basically person who has applied for 10 shares, he will receive 5 shares. I hope this helps

Rajshree

CA Foundation

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429

AS - 18 Related party transactions

answered on 19-Jul-22 09:00

A Ltd and B Ltd have a joint venture named AB Ltd , A is related party to AB Ltd and B is related party to AB Ltd .... are A Ltd and B Ltd related parties ?

latest answer

Thank you all

krishnan venkatesan

CA Final

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AS-10

answered on 19-Jul-22 19:54

Why revaluation reserve is created?

latest answer

Yeah sir now I got to know regarding free reserves. They can't be declared as dividends...

Sugam SM

CA Foundation

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General Query

answered on 15-Jul-22 10:39

Is it possible to apply for CMA intermediate DIRECT ENTRY by completing "degree in correspondence"

latest answer

Yes. As long as you fulfill the required criteria of ICMAI Check link below for more details https://www.indigolearn.com/exam/CMA-Course-A-Complete-Guide

Ashfaq Ahmed

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