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Financial statements of company
Accountancy
answered on 08-Mar-22 11:32
What is the difference between capital reserve & capital redemption reserve?
latest answer
The profit earned by the company through special transaction, that is not available for distributing dividend to shareholders is known as Capital Reserve. It contains the following: Share Premium, Profit on reissue of forfeited shares, Capital Redemption Reserve (CRR), Development Rebate Reserve CRR is formed when there is a buy-back or redemption of shares, i.e. for a specific purpose. This is done by transferring reserves freely available for distribution to CRR, which is not freely available for distribution, and has only one use - to issue fully paid bonus shares.
Sumita Shah
CA Inter
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324
Bonus issue
Accountancy
answered on 07-Mar-22 15:11
Is 2,50, 000 added to exixting authorised share capital is wrong . Is it to be replaced by 1,12,500? ( In WN 4th attachment)
latest answer
In exams you can increase the Authorised capital by the shortfall amount as explained in class
SNEHA PUGAZHENDHI
CA Inter
★ 1K+
1
371
Capital & rev..... Exp
Accountancy
answered on 05-Mar-22 20:32
amount paid to management company for consultancy to reduce work expenses can anyone tell me whether it is which type of expenditure of above .lines........
latest answer
Revenue
Balachandar S
CA Inter
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6
351
Amalgamation
Accountancy
answered on 07-Mar-22 14:57
At the time of amalgamation why capital reserve is considered as a liability.....Isn't it a share holder fund
latest answer
Got the ans..thank you samaira khan
Anusha narayana
CA Inter
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7
353
advanced accounting- ESOP
Accountancy
answered on 05-Mar-22 19:04
When should I choose fair value per option and when should I choose market value per option ?
latest answer
Accounting for expense is done using FV Option.
Ashwathi selvanathan
CA Inter
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1
402
Buyback of Shares
Accountancy
answered on 05-Mar-22 13:21
As Share resource Test =25%(Paidup Equity Capital+ free reserves) ------------------------------------------------------------------ Buy back Price Does Free reserves include "Capital Reserve"?
latest answer
Tq
Surya Prakash
CA Final
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631
Amalgamation
Accountancy
answered on 08-Mar-22 12:31
Tratment of RDD provided on debtors of Selling company in case of amalgamation nature of purchase
latest answer
Can you please share the problem for more context? Thanks
Hrishikesh Ransing
CA Final
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354
Financial statements of companies
Accountancy
answered on 04-Mar-22 10:47
How dividend amount is calculated ? General reserve is Rs 40 Lakhs
latest answer
Could you give the full questoin
divya prasath
CA Inter
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337
loss of stock
Accountancy
answered on 21-Mar-22 11:27
dec 2021 question loss of stock please verify if this correct or not
latest answer
Short sales
Elavarasi B
CA Inter
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4
419
Buy back shares
Accountancy
answered on 02-Mar-22 20:13
Why revaluation reserve are not called free reserve?
latest answer
Because of the origin of revaluation reserve. It comes into existence when say management decides its land is actually valued at Rs.20 lakh instead of Rs. 15 lakh, it will increase the asset value by Rs. 5 lakh and create a reserve of Rs. 5 lakh. In relaity this profit has not been realised. It is just a book entry. So, law says don't take it as Free Reserve i.e. it is not available for distribution as dividend to shareholders.
Sumita Shah
CA Inter
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315