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Rectification of error

Accountancy

answered on 06-Aug-21 20:51

Explain this rectification

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When the cheque is received,the entry is Bank a/c dr To man mohan When the cheque got dishonoured, entry (above entry) should be reversed,then Man mohan a/c dr To bank a/c But they had debited sales returns instead of man mohan and hence sales returns to be credited Man mohan a/c dr To sales returns

Bhuvanesh Reddy

Bhuvanesh Reddy

CA Inter

7K+

5

668

Advance accounts amalgamation

Accountancy

answered on 06-Aug-21 13:56

While combining the b/s of after amalgamation why dont we merge the free reserve of the selling company? It is also form part of shareholders fund ?please clarify

latest answer

The identity of transferor company's reserves is kept intact in merger method where Share holders holding not less than 90% of the face value of the equity shares of the transferor company become equity shareholders of the transferee company by virtue of the amalgamation. But under purchase method The identity of the transferor company'es reserves except statutory reserves is not kept intact because the same shareholders might not continue

Bhavya Kumar

Bhavya Kumar

CA Final

7K+

1

572

Consignment

Accountancy

answered on 06-Aug-21 12:36

In illustration 1, the inventory valuation has no insurance charge. But in the illustration 3, the inventory valuation has insurance. Which one is correct? Should we include the insurance cost or not in the inventory valuation?

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Ok ok, now I understood. Thank you bro.

Vijay K

Vijay K

CA Inter

9K+

7

707

Postal books

Accountancy

answered on 06-Aug-21 07:30

I have received one postal book which name is " the chartered accountant student monthly guide " from ICAI. I know a little bit about this but could anyone tell me about this book.

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Thank you brother

Vijay K

Vijay K

CA Inter

9K+

3

641

Depreciation

Accountancy

answered on 06-Aug-21 09:10

Mam/sir CAN you explain what is Amortization. with an laymen's language examples. Y I asked this question means I got confused from others told pls with clear example tell me

latest answer

Amortization is same as like depreciation and the only difference is that amortization is charged on intangible assets while the depreciation is charged on tangible assets. In simple amortization is charged on intangible assets

Balachandar S

Balachandar S

CA Inter

59K+

7

669

Financial statements of companies

Accountancy

answered on 05-Aug-21 14:38

Under which category of Equity and liabilities will Retirement gratuity fund appear in the balance sheet ?

latest answer

Thank you so much ma'am

Rithani R.C

Rithani R.C

CA Inter

4K+

4

564

journal entries

Accountancy

answered on 05-Aug-21 15:47

can we return the goods purchased on cash ? what is the journal entry then ?

latest answer

Cash A/C. Dr. XXXX To purchase return A/c. XXXX

Harshan Pothula

Harshan Pothula

CA Foundation

0

2

633

Consignment

Accountancy

answered on 05-Aug-21 12:38

Can the consignee sells the goods on credit basis and approval or return basis.

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Thank you, mam

Vijay K

Vijay K

CA Inter

9K+

12

710

Amalgamation of companies

Accountancy

answered on 05-Aug-21 10:43

How does the concept of paid up capital work in amalgamation mainly when purchasing company issues shares at a value based on paid up capital?. For eg. ( Have attached the of the question)

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Can you clarify your query In the question attached - shares are issued at face value 20 and question states 18 paid up that means Rs.2 are yet to be called... and Rs.4 as premium.... So 5 shares of value 22 (18+4) is taken as consideration.... so 1 prefernce share in old company = 5 x 22 of new company

Rithani R.C

Rithani R.C

CA Inter

4K+

1

512

Doubt

Accountancy

answered on 05-Aug-21 11:47

Sir why security premium and CRR cant be applied for payment of unpaid amount on any shares held by existing shareholders ..? As it is also like bonus issues right?

latest answer

Issuing bonus shares are not same as making unpaid into fully paid up shares..... Technically the no. of shares doesnt increase for making unpaid to fully paid but for issuing bonus shares, no. of shares will increase SR & CRR are to be used across for all shareholders in case of bonus shares to transfer the benefit in place of dividend.... Unpaid amount is the liabiltiy due from shareholder

Sri kanaga Varshini

Sri kanaga Varshini

CA Final

3K+

2

639