Pre accquisition profit

answered on 03-Sep-21 09:58

What is pre accquisition profit?

latest answer

Any profit earned before acquisition of a company , is called pre acquisition profit , subsidiary have earned in previous years before holding company acquires

Rubika Sankar

CMA Inter

★ 370

2

378

As1

answered on 02-Sep-21 11:52

Is going concern assumption valid in the year 2016-17 ?

latest answer

Here, the going concern assumption is not in doubt for the FY 2016-17 since the assumptions validity is for foreseeable future which is period not exceeding 1yr from the balance sheet date as here the contract is said to expire on 31-03-2018 , therefore for FY 2016-17 going concern assumption is valid.

Chandan Subudhi

CA Final

★ 12K+

2

355

Preparation of financial statement

answered on 02-Sep-21 01:28

Sir ,why is the depreciation stated in trial balance not adjusted in provision for depreciation while preparing financial statement,in the following question ?

latest answer

Sorry,got the answer.

Abhishek Purohit

CA Inter

★ 10K+

1

399

Self balancing ledger

answered on 02-Sep-21 10:53

Anyone plz derive the sum? Self balancing ledger Book back sum pg no:406

latest answer

Okie bro

Merfi Mufi

CMA Inter

★ 230

6

498

Investment accounts

answered on 01-Sep-21 17:12

Can someone please explain how this answer had come. Question. No. 12

latest answer

When investment are acquired on cum right basis and the market value of investment after becoming ex right is lower than the cost for which they were acquired then it is advisable to reduce the carrying amount of investment to the extent value fallen down and balance if any, credit to P&L a/c

Susai Yappan

CA Inter

★ 12K+

1

402

Investment accounts

answered on 01-Sep-21 17:32

Why have they written come right price near brokerage of 1 percentage. ( illustration 10 )

latest answer

They mean to say the brokerage will be charged on cum right price not ex right price, so when calculating brokerage consider that

Susai Yappan

CA Inter

★ 12K+

1

362

Company accounts

answered on 01-Sep-21 10:02

We can convert preference shares to equity shares right ,but why have they given that we cannot convert it into any other shares? Can anyone explain it to me?

latest answer

Thank you ma'am

Soumya A

CA Inter

★ 20K+

2

490

Cash flow statement-(indirect method)

answered on 01-Sep-21 17:28

How to calculate tax paid for this sum?

latest answer

This is covered in class. Did you go through it?

Rubika Sankar

CMA Inter

★ 370

1

375

Giidwill

answered on 31-Aug-21 16:32

In 6th question) After all the adjustment, the average profit is 17,500. Here NRR is not given, then how can we arrive at goodwill by super profit basis. And the answer is option ( b ) - 8,750.

latest answer

The average profit is 4,375 the the goodwill for the three years purchase is 8,750.

Vijay K

CA Inter

★ 9K+

2

383

Purchase consideration

answered on 01-Sep-21 10:36

I am having doubt regarding purchase consideration.when to use this method . IIL 8 and 11 8 - pg no :5 45 11-pg.no : 5.59

latest answer

Net Payment Method - the aggregate of all payments made in the form of shares, debentures, other securities and cash to the shareholders of the transferor company is taken as consideration Net Assets / Net Worth Method - is used when all the modes of discharging the purchase consideration (e.g. Pref. Shares, Equity shares or cash payable to shareholders of transferor company) are not given and hence where Net Payment Method cannot be adopted. Under this Method, purchase consideration is ascertained by aggregating the agreed values of only those assets which have been taken over by the transferee company and deducting it from the agreed value of liabilities taken over.

Prasanna Venkatesan

CA Inter

★ 3K+

3

416