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Consolidatn illustratn 5

Accountancy

answered on 08-Jul-21 10:22

Is the answer given in textbook of Illustration 5 of consolidated financial statements wrong? Because they have taken 500000*40% as dividend declared instead of 300000*40%. Pls check the answer I have attatched. Is this the right way to do or the solution in textbook itself is correct?

latest answer

ICAI solution is correct. Total shares in S Ltd is 5000 shares of Rs. 100 each. In those 5000 shares, H ltd holds 3000 shares. Here, S ltd declared dividend. So, total dividend is 500000 x 40% = Rs. 2,00,000. Share of H Ltd Dividend is Rs. 1,20,000

Ali S

Ali S

CA Final

8K+

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452

Dividend

Accountancy

answered on 05-Jul-21 09:01

Dividend is declared only on the profit earned DURING the year, right? Or will it be declared on opening balance of P&L as well?

latest answer

Dividend can distribute out of the current year profits or previous years profits or free reserves or money provided by cg/ sg but dividend can never be paid out of capital profits of the company

Ali S

Ali S

CA Final

8K+

2

509

Redemption of debentures

Accountancy

answered on 05-Jul-21 11:19

In case of profit or loss on sale of DRRI investment That should be transferred to DRR or p&l account

latest answer

Thank you so much sir

Sairam Reddy

Sairam Reddy

CA Final

10K+

7

448

Redemption of debentures

Accountancy

answered on 04-Jul-21 21:48

In the table model.for calculating interest , Fv, Ex-int and cum interest . Can I do like this in this problem..

latest answer

Thank you Sir

Naresh M

Naresh M

CA Final

75

4

495

Cash flow

Accountancy

answered on 04-Jul-21 23:04

Can any one explain the treatment of extraordinary items in cash flow (indirect method) 1) earthquake disaster settlement 2) Insurance claim received of amount of fixed Assets by fire

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Final number would not change.

Sairam Reddy

Sairam Reddy

CA Final

10K+

3

494

Redemption of debentures

Accountancy

answered on 04-Jul-21 20:54

If question is silent about interest payable, whether we can pass an entry for interest payment upto the date of redemption? (Because in institute study material, they didn't pass entry for this)

latest answer

Yes we have to pass entry for interest upto the date of redemption Can you share that question once

Nivedha Balaji

Nivedha Balaji

CA Final

9K+

1

420

Pre and post incorporation

Accountancy

answered on 04-Jul-21 20:04

Is Interest on loan taken in post incorporation period to pay the purchase consideration chargeable to pre incorporation period?

latest answer

Thank you sirr

Nagesh S Hegde

Nagesh S Hegde

CA Inter

11K+

6

445

Hire purchase

Accountancy

answered on 04-Jul-21 22:15

Can any one explain the reason behind hire vendor preparing interest suspense account

latest answer

It's just a method of accounting that would be at discretion of vendor depending on its business, items or volume. Vendor may want to know upfront how much it will get from particular vendor and may want to debit him with that amount at the time of sale / hire purchase itself.

Sairam Reddy

Sairam Reddy

CA Final

10K+

1

569

Preparation and presentation of FS

Accountancy

answered on 04-Jul-21 16:55

Sir bills payable and bills receivable comes under the head ?? In B/S

latest answer

current assets and current liabilities

Naresh M

Naresh M

CA Final

75

1

417

AS 11

Accountancy

answered on 04-Jul-21 17:00

What is exchange difference in forward exchange contract?how it is determined ?

latest answer

Ok sir tnq

Abhishek Purohit

Abhishek Purohit

CA Inter

10K+

6

499