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Redemption of debentures
Accountancy
answered on 18-Jul-22 14:26
In the question(Illustration 6), there is an option to debenture holders to convert 20% of their holding into equity shares at a predetermined price of â?¹15.75 per share. Whether those who are exercising the option has to pay any money to the company?
latest answer
No.Its conversion of debentures to equity shares.
Rinuja TK
CA Inter
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3
420
Redemption of debentures
Accountancy
answered on 20-Jun-22 14:35
If the debentures are purchased within the interest period, the price would be inclusive of interest provided these are purchased "Cum-interest"; but if purchased " Ex-interest", the interest to the date of purchase would be payable to the seller additionally. In order to adjust the effect thereof the amount of interest accrued till the date of purchase, if paid, is debited to the Interest Account against which the interest for the whole period will be credited. As a result, the balance in the account would be left equal to the interest for the period for which the debentures were held by the company. Please explain above with an example
latest answer
lets say if ex-interest value=100 (F.V=100,INT@12%) interest accrued for 2 months =2 then cum- interest value = 102 then J.E would be debenture a\c Dr. 100 interest a\c Dr. 2 to bank a\c 102 after 6 months interest received bank a\c DR. 6 To interest a\c 6 so 6-2=4 this rs.4 is the interest income for 4 months (6= interest received for 6months, 2= interest paid for 2months )
Rinuja TK
CA Inter
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332
Journal entry
Accountancy
answered on 19-Jun-22 01:49
Can anyone explain this four4 transactions?
latest answer
There is not a big difference between petty cash and cash account.. Petty cash means a certain portion of amount will be kept and managed by a cashier called petty cashier for day to day operating expenses.. But cash account is not like that.. In the 3rd question there is a specific mention about the usage of petty cash that's why we drawn out of petty cash..
Sai G
CA Inter
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7
397
Npo
Accountancy
answered on 19-Jun-22 00:24
Can anybody help me that why opening balance sheet is showing" 400+100 " amount of honorarium
latest answer
*expense 100 and honarium 400
Nai Jay
CA Inter
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5
393
Measurement bases
Accountancy
answered on 18-Jun-22 18:44
Liabilities are carried at the undiscounted amount of cash or cash equivalents that would be required to settle the obligation currently. This is the treatment for liabilities under current cost basis. Here, what is the meaning of undiscounted amount of cash and cash equivalents? Pls explain.
latest answer
Ok sir. Thank you!
Sibi Srinivasan
CA Final
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2
343
Journal entry
Accountancy
answered on 17-Jun-22 22:16
Discount received results in asset increase then why it is credited? ð?¤?ð?¤? *13 question
latest answer
Tq
Sai G
CA Inter
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9
636
Account
Accountancy
answered on 17-Jun-22 20:19
Is it right? ( he withdrew cash from business for personal use) Cash alc dr To bank alc
latest answer
There is a option available in Indigo learn application ,where u find study planner if u enter all ur details it will draft a plan for u .follow that ...
Sai G
CA Inter
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8
362
Doubt
Accountancy
answered on 20-Jun-22 16:58
Can any one explain the exact concept of conservatism and realisation it's some what tough to understand
latest answer
OK sir thank you
sai t
CA Foundation
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9
476
Journal entries
Accountancy
answered on 16-Jun-22 21:46
Why? cash alc dr xxx To bank alc xxxx Can we write ? drawings alc dr xxx To cash alc xxx
latest answer
Tq
Sai G
CA Inter
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3
411
Basics
Accountancy
answered on 17-Jun-22 14:38
What's the difference between inventory and purchases, aren't they both almost the same?
latest answer
When you purchase goods, the actual accounting entry that should happen is INventory Dr. To Creditor When the goods are sold Cost of Goods Sold To Inventory (For simplicity sake, we directly debit purchases account and treat it as an expense - academically)
Vaibhav Gupta
CA Final
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6
404